JPMorgan, ICBC Standard pull back from China metal financing -Bloomberg News
Reuters
Published Sep 16, 2022 05:21
Updated Sep 16, 2022 05:32
(Reuters) -JPMorgan Chase & Co and ICBC Standard Bank Plc are cutting back on financing to China's troubled metals trade, Bloomberg News reported on Friday, citing people familiar with the matter.
The lenders have pulled back after a liquidity crisis emerged at top copper trader Maike Metal International Group Co. Ltd, the report said.
At least three Chinese metal trading companies have had credit lines frozen or reduced by either of the banks in recent weeks, the report added. (https://bloom.bg/3RNBCjL)
Both JPMorgan (NYSE:JPM) and ICBC Standard Bank have financing relationships with Maike.
It was not clear whether the banks' pullback from the Chinese metals market was a temporary freeze, while they assess their situation, or a more permanent retreat, the report said.
JPMorgan declined to comment, while ICBC did not immediately respond to Reuters' request for comment.
Maike Metal International Group said last month that it is seeking help from the government and financial institutions to alleviate liquidity issues caused by measures aimed at curbing COVID-19 outbreaks.
Lockdowns in the cities of Shanghai and Xi'an had affected Maike's upstream and downstream businesses, halting deliveries and transport, as well as delaying the issue of some financial documents, Reuters reported last month.
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Written By: Reuters
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