Weekly Global News Wrap: HSBC gets approval to sell Russia unit; Chinese banks approve $17b property loans

And China cuts 25 basis points to five-year loan prime rate (LPR).

From Reuters:
Russian President Vladimir Putin has approved HSBC’s plan to sell its Russian unit to privately-owned Expobank.

This paves the way for HSBC to fully exit the market.       

In June 2022, HSBC had agreed to sell a 100% stake in the unit to Expobank. Moscow has since tightened restrictions on foreign asset sales since, with banks requiring Putin’s approval for any deal.

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From Reuters:
Chinese banks approved property development loans of $17.2b as part of “Project Whitelist”, a special mechanism to inject liquidity into the sector.

However, detailed statements show some of the loans to distressed developers are merely adjustments on existing credit. 

Banks are adjusting the repayment plans or extending the maturity of some existing loans and not granting new credits, bankers and developers said.

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From Reuters:
China has cut 25 basis points to the five-year loan prime rate (LPR), the largest since the reference rate was introduced in 2019.

"This is the biggest signal. In other words, the largest interest rate cut cycle in history has begun," said Yan Yuejin, analyst at E-House China Research and Development Institution. 

The cut will directly impact the real estate sector by lowering mortgage costs, he said.