Some banks have cut the margin financing ratio of New World Development (HKG:0017) to 30% over concerns regarding its financial status, The Standard reported Tuesday, citing media reports.

Bank of East Asia (HKG:0023) is said to have reduced the financing ratio for the developer's stocks and bonds to 30% from 40% beginning Dec. 20, the report said, citing the Hong Kong Economic Journal.

CMB International Securities also slashed the ratio of pledged New World stocks to 30%, according to the report.

New World's net debt to equity ratio was at 82.7% as of the end of 2023 compared with Henderson Land's (HKG:0012) 41.4% and Sun Hung Kai's (HKG:0016) 21.2%, The Standard reported, citing Bloomberg Intelligence.

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