Market Chatter: China Instructs Banks to Suspend New Loans to US-Sanctioned Oil Refiners, Sources Say
China's financial regulator called on the country's biggest banks to suspend new loans and review their loan exposure to five oil refiners facing U.S. sanctions over ties to Iranian oil, Bloomberg News reported Thursday, citing people familiar with the matter.The National Financial Regulatory Administration advised banks not to extend new renminbi-denominated loans to refiners pending further guidance, the report said.Among those facing U.S. sanctions are Hengli Petrochemical's (SHA:600346) Dalian refinery, Shandong Shouguang Luqing Petrochemical, Shandong Jincheng Petrochemical, Hebei Xinhai Chemical, and Shandong Shengxing Chemical.The directive, which came before the long May Day weekend, comes in contrast with a May 2 notice from the Commerce Ministry that called on companies to ignore U.S. sanctions.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
