Ratings agency Moody’s on Thursday issued a new warning saying that increased exposure to mainland borrowers poses risks to Hong Kong lenders and the city’s banking system, South China Morning Post reported. Moody’s first issued its health warning on Hong Kong banks in June 2013. Since then the local economy has slowed and mainland loans have swollen while credit conditions have worsened. Hong Kong’s exposure to the mainland grew by 29% in 2013, accounting for 20% of total banking assets, or US$297 billion, by the end of last year.
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