China’s vast development bank has begun asking some international clients to postpone drawing down previously committed credit lines, in moves that highlight how strains on the country’s financial system are reverberating abroad.
Regulators in China have been trying to rein in rapid credit growth by making it harder for banks to move assets off their balance sheets, and by pushing up the cost of borrowing in the money market.
This crackdown has been aimed in large part at the country’s shadow banks – lightly regulated lending institutions that serve risky clients. But the impact has been felt throughout the financial sector, even hurting China Development Bank, a lender fully owned by the state.
CDB has asked several foreign clients in recent months to delay drawing down lines of credit that had previously been offered, according to individuals with direct knowledge of the matter. Two Indian companies – an infrastructure developer and a shipping group – were among those told to wait before accessing the promised lines, the individuals said.
At the same time, CDB and Export-Import Bank of China, another state-owned lender, have shown greater willingness to put international borrowers into bankruptcy and sell their assets on the global market in an attempt to recover value from failed loans.
New York court filings show that Overseas Shipping Group of the US is trying to sell five ships to the GSO arm of Blackstone on behalf of Eximbank. Last year other investors bought ships that Torm of Denmark sold on behalf of CDB. In the past, such assets would have been sold in China at below-market rates, some investors told the Financial Times.
The lending cuts and more aggressive loan management by CDB and Eximbank show how the government’s attempt to clean up shadow banking by raising interbank rates is affecting its financial system’s heart.
CDB and Eximbank have become pillars of global development finance, together lending more to governments and companies in developing countries than the World Bank.
Their funding largely comes from selling bonds to Chinese banks, but that has become more difficult amid tightening of monetary conditions.
CDB did not respond to requests for comment. The Indian companies could not be reached. The original size of the credit lines was not disclosed.
Additional reporting by Simon Rabinovitch in Shanghai
中国庞大的国家开发银行(China Development Bank)开始要求一些国际客户推迟提取之前约定的信贷额度，凸显中国金融体系的紧张正在国外引发冲击波。
与此同时，国开行和另一家国资银行中国进出口银行(Export-Import Bank of China)如今更愿意迫使国际借款者破产，然后在全球市场上出售它们的资产，以图尽可能收回不良贷款的价值。
纽约法庭文件显示，美国海外船舶控股集团(Overseas Shipholding Group)试图以中国进出口银行的名义向黑石(Blackstone)旗下的GSO出售5艘船舶。去年，其他投资者购买了丹麦公司Torm以国开行名义出售的船舶。有投资者向英国《金融时报》表示，此类资产过去通常以低于市价的水平在中国出售。