HSBC, StanChart May Face Secondary Shockwaves From Evergrande Crisis: Analysts

HSBC, StanChart May Face Secondary Shockwaves From Evergrande Crisis: Analysts
A peeling logo of the Evergrande Oasis, a housing complex developed by Evergrande Group, is seen outside the construction site where the residential buildings stand unfinished, in Luoyang, China on Sept. 16, 2021. Carlos Garcia Rawlins/Reuters
Reuters
Updated:

LONDON—HSBC and Standard Chartered could face spillover damage to their profits and balance sheets from the debt crisis enveloping China Evergrande Group even though the two banks say they have limited their direct exposure, analysts have warned.

Other banks and insurers could also suffer indirect effects such as loss of fees or a devaluation of their investments.