(Reuters) – UBS Group stopped accepting certain bonds and shares of Hong Kong developer New World Development as collateral for margin loans in recent weeks, Bloomberg News reported on Tuesday.
Private banking branches Citigroup (NYSE: ) and HSBC Holdings (NYSE: ) also stopped lending New World securities several months ago, a 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 faced executive management problems in recent months, with successor Adrian Cheng stepping down as CEO in late September and replacement Eric Ma resigning just two months later.
The company posted an annual loss in 2024 as it grappled with the highest debt among its Hong Kong rivals at HK$199 billion ($25.61 billion), JPMorgan data showed in July.
