China tells banks to suspend new loans to sanctioned refiners
Updated
Updated · Bloomberg · May 7
China tells banks to suspend new loans to sanctioned refiners
7 articles · Updated · Bloomberg · May 7
The National Financial Regulatory Administration told major banks to pause new yuan lending to five refiners, including Hengli Petrochemical's Dalian refinery, while reviewing exposure and awaiting further guidance.
Banks were also asked to examine business dealings with the companies but not to demand repayment of existing loans, according to people familiar with the private instructions.
The move follows recent US sanctions on the refiners over ties to Iranian oil, signalling Beijing's effort to contain financial risk without immediately cutting off current credit.
Caught between US sanctions and Chinese law, which side will global banks be forced to choose?
Will the Trump-Xi summit defuse this financial standoff, or will the US escalate its sanctions?
Is China’s new legal arsenal strong enough to challenge the dominance of the US financial system?