Evergrande’s Top Creditors Are Reducing Loan, Bond Exposure

Several of China Evergrande Group’s largest lenders are reducing their exposure to the debt-laden developer, underscoring persistent concerns about the company’s financial strength despite its recent deal with investors to avert a cash crunch.

China Minsheng Banking Corp., Evergrande’s biggest creditor, told branches to avoid new unsecured loans to the developer and reduce overall financing, including through the bond market, people familiar with the matter said, asking not to be identified discussing private information. The move comes amid increased scrutiny from regulators, who have urged Minsheng Bank to improve management of its Evergrande risks after some of the bank’s short-term loans lacked sufficient collateral, one of the people said.