(Reuters) – UBS Group has halted accepting certain bonds and shares of Hong Kong property developer New World Development as collateral for margin loans in recent weeks, Bloomberg News reported on Tuesday.
The private banking arms of Citigroup (NYSE:) and HSBC Holdings (NYSE:) have also stopped lending on New World securities some months ago, the Bloomberg report said, citing people familiar with the matter.
New World Development, UBS Group, Citigroup and HSBC did not immediately respond to a Reuters email seeking comment.
New World, owned by billionaire tycoon Henry Cheng and family, has been facing executive governance issues over the past few months, with heir Adrian Cheng stepping down as CEO in late September and replacement Eric Ma resigning just two months later.
The company swung to an annual loss in 2024 as it grappled with the highest debt among its Hong Kong peers at HK$199 billion ($25.61 billion), JPMorgan data showed in July.
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