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China debt crunch

Hong Kong banks suspend mortgages to Evergrande projects in city

Cutoff deepens woes of world's most indebted property developer

Hong Kong banks have stopped approving mortgages for properties under development by China Evergrande Group in the city, sources say.   © Reuters

HONG KONG -- Banks in Hong Kong including HSBC Holdings, its unit Hang Seng Bank and Bank of East Asia have stopped approving some mortgages for properties being developed by embattled China Evergrande Group in the city, four people familiar with the decisions say.

Standard Chartered and Bank of China's Hong Kong unit also are declining to offer new home loans for unfinished Evergrande properties, according to one of the sources. The halt comes as concerns rise over Evergrande's liquidity and its ability to meet debt payments, they said.

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