Banks wary of lending to private Chinese companies

摘要

Asian banks are increasingly wary of lending to Chinese privately-owned enterprises as problems emerging on offshore dollar loans for Chinese companies stoke fears of higher defaults. Two privately-owned Chinese companies - labixiaoxin snacks and china lumena new materials corp - are negotiating with lenders after their shares were suspended from the Hong Kong stock exchange in March when financial results were delayed. Concerns about defaults and financial reporting standards are making banks more cautious about lending to privately-owned Chinese companies and other loans are taking longer to syndicate as a result.