, Taiwan

Chart of the Day: China trade loans in Singapore weaken amid lower commodity prices

They’re likely to stay weak in 2015.

Loan growth has been slower for all and trade loans to China should remain a swing factor for Singapore’s biggest banks.

According to Maybank Kim Eng, with weaker loan growth in 1Q15 and likely to stay weak, guidance has either been lowered or skewed to the lower ends of earlier ranges.

Trade loans to China should remain a swing factor, particularly for DBS and OCBC.

Maybank KE adds that short term, a narrowing of on- and offshore spreads may affect the economics of China trade loans. Weak commodity prices and a slowing Chinese economy do not augur well.
 

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