...APAC's China Exposure Fitch Ratings estimates that Asia-Pacific (APAC) banks had accumulated about USD1.2trn of China-related exposure at end-2013. Hong Kong accounts for the bulk (USD798bn), with 34% of system assets, followed by Macau (20%), Singapore (12%) and Taiwan (7%). Our first chart illustrates growing China risk across the region, notwithstanding limited data availability for other countries. Concentration for larger countries is low (Australia: 1.2%, Japan: 0.6%). Most exposure is trade related, financing foreign companies' operations in China and Chinese entities' outbound expansion, the latter comprising predominantly state-owned enterprises or large Chinese corporates. Financing SMEs and retail activity resides with the banks which ¡ as part of their regional aspirations ¡ have the most developed onshore subsidiary operations (HSBC, Standard Chartered, Bank of East Asia, DBS and ANZ). China concentration is clearly highest in Hong Kong, and the available data series are relatively...
