Three Chinese Banks Deny Being Probed by U.S. in Relation to North Korea Sanctions
June 25 2019 - 4:01AM
Dow Jones News
BEIJING--Three Chinese banks denied that they were involved in
any investigation related to possible violations of North Korea
sanctions after a report about the probe sent their stocks down
Tuesday.
The Washington Post reported Monday that three Chinese lenders
were found by a U.S. judge to be in contempt for refusing to comply
with subpoenas in an investigation into North Korea sanction
violations, a decision which could cut off their access to the U.S.
financial system.
The three banks were not identified by the judge, but the report
said details in the court ruling align with a 2017 civil forfeiture
action against three Chinese banks--Bank of Communications, China
Merchants Bank and Shanghai Pudong Development Bank.
Shares of China Merchants Bank traded in Hong Kong tumbled
nearly 10% Tuesday before recovering some of their losses in the
afternoon, after it denied it was being investigated. The
Shenzhen-based lender said it a statement that it complies with
related United Nations resolutions and Chinese laws.
Bank of Communications, a state-owned lender, said in a
statement that a U.S. court had asked Chinese banks to hand over
information about their clients outside of the U.S. and said the
request is a matter of legal assistance and should be carried out
under the auspices of a legal assistance pact signed between the
U.S. and China. After it released a statement, stocks of the state
bank recovered and ended 3% lower on Shanghai Stock Exchange.
Shanghai Pudong Development Bank, when asked to comment on the
report, said it couldn't provide clients' information to overseas
authorities without authorization. The bank's shares dropped 3.1%
in Tuesday's trading, recovering from a 4% loss earlier in the
day.
Write to Grace Zhu at grace.zhu@wsj.com
(END) Dow Jones Newswires
June 25, 2019 03:46 ET (07:46 GMT)
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