HSBC Says China Property Sector May Worsen, Sets Aside Funds

(Bloomberg) -- HSBC Holdings Plc warned of the risk of a further deterioration in China’s property sector, setting aside more funds for possible losses on its exposure to the country’s commercial real estate sector.

Of $1.1 billion expected credit loss charges announced in its third-quarter earnings Monday, about $500 million were related to the commercial real estate sector in mainland China. HSBC has charged a total of $800 million against the China property portfolio this year.