(March 4): Several Chinese financial firms are scaling back exposure to Middle Eastern debt, while regulators are stepping up oversight as the conflict raises concerns over the nation’s extensive lending in the region. One major bank took a rare step in restricting a drawdown on a bilateral loan to one of the Abu Dhabi government’s financial entities, a person familiar with the matter said. A Chinese insurer’s asset management arm is reducing holdings of sovereign and state-linked bonds, including those issued by Saudi Aramco, one person said. Meanwhile, traders at a Chinese institution have been instructed to halt dealings in names from the region starting Monday, a separate person said. The Hong Kong Monetary Authority contacted at least two local banks this week to review their exposure to Middle Eastern loans and bonds, people familiar with the matter said.

Source: The Edge Markets March 04, 2026 09:34 UTC