Home 禄 Supplement 禄 Banking
Top global banks warn of losses
Print Edition
Top global banks Nomura of Japan and Switzerland鈥檚 Credit Suisse warned yesterday they could face significant losses following reports of their exposure to a US fund that sold billions in stocks last week.
Neither bank named the client but the warnings follow a Bloomberg News report that a little-known fund sold more than US$20 billion in stocks from US media and Chinese companies listed in New York on Friday. The unusually large sale by Archegos Capital Management, which looks after businessman Bill Hwang鈥檚 fortune, was carried out directly by major houses Morgan Stanley and Goldman Sachs.
Among the companies sold were top Chinese names such as Baidu Inc, Tencent Music Entertainment Group and Vipshop Holding plus US giants such as ViacomCBS and Discovery.
The share prices all plunged as a result, reportedly causing Archegos Capital Management to seek fresh funding.
Yesterday, Nomura shares plunged by 16 percent in Tokyo after it warned of a potential US$2 billion loss while Credit Suisse shed 14 percent.
With the global financial system awash in cash as central banks and governments try to keep their economies afloat during the coronavirus pandemic, there have been growing concerns that the money has helped fuel speculative bubbles.
鈥淭hese developments certainly raise questions surrounding the rise of margin debt and over leveraging,鈥 said Sophie Griffiths, market analyst at OANDA.
Stephen Innes, chief global markets strategist at Axi, said investors 鈥渁re looking with some concern to further large sales hitting financial markets鈥 but the damage should be limited.
鈥淚t is essential to realize this is not a move inspired by economic fundamentals; instead, it is an isolated case of poor risk management and will ultimately have few if any lasting macroeconomic implications,鈥 Innes said.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
