SINGAPORE (Reuters) – Some of the world’s biggest banks in commodity trade financing are creating a digital trade finance registry in Singapore to try and mitigate the risk of trade fraud and boost transparency after losing billions of dollars due to a spate of defaults.

Banks have reduced their commodities business this year to cut risk following collapses, including that of Singapore’s Hin Leong Trading (Pte) Ltd, which shocked lenders after instances of financial trouble were laid bare by the coronavirus crisis.

In a joint statement issued on Tuesday, DBS Group

and Standard Chartered

said they are leading a group of 12 other banks in Singapore to create and conduct a central database to access trade transactions financed across banks.

“A digital trade registry strengthens trade financing banks’ ability to avoid duplicate financing, and facilitates more sustained credit flow in trade financing,” said Ho Hern Shin, an assistant managing director

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(Bloomberg) —


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China’s fragile economic recovery is ushering in a dangerous new phase for the nation’s $4.1 trillion corporate bond market.

With the economy now strong enough for policy makers to dial back financial support but still too weak to save the most distressed borrowers, some fund managers are bracing for defaults on domestic Chinese debt to hit record highs this year. Delinquencies have already started rising after a remarkably quiet second quarter, and pressure on borrowers is set to grow as 3.65 trillion yuan ($529 billion) of notes mature by year-end.

While few see a crisis in the offing, debt specialists at SC Lowy and Adamas Asset Management are becoming more selective in China, arguing that the government-induced calm in local credit markets is unlikely to last. Analysts say non-state companies, lower-rated developers and some local government financing vehicles are particularly vulnerable as borrowing costs climb and

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