Singapore\\\'s regulator seeks China commodity lending data

HONG KONG Aug 2 (Reuters) : The Monetary Authority of Singapore (MAS) has sought information from some Singapore-based lenders about their Chinese clients and loan exposure to China amid an investigation into a suspected commodity financing fraud at China's Qingdao port.

The regulator sent a questionnaire to a number of banks in mid-July requesting data on their total China exposure by purpose and trade finance exposure, according to five Singapore-based banking sources. Lenders were also asked for details of their import and export commodities exposure.

The increased oversight by MAS of the huge commodity trade services industry based in Singapore suggests it is trying to build a picture of its net exposure to China's sprawling commodity-backed financing sector, which has come under pressure this year due to slowing growth and a weak property market.

A spokesman for MAS, the city-state's central bank and financial industry regulator, said it "does not comment on our internal operations".

MAS routinely asks banks for details on their risk exposure and market conditions, but bankers said the questionnaire was unusual due to its depth and scope and that it required them to gather a lot of data.

It was conducted due to "recent adverse news and development concerning trade financing into China", MAS said in an email to the banks. The email was read out to Basis Point, a Thomson Reuters publication, by two of the sources.

"We are guessing it has something to do with the situation in Qingdao. We have not received such questionnaires before. It is our first time," said a banker who works in the corporate financing division of a Singapore-based Chinese bank.

One of the banks was requested to submit data on China deposits, wealth management and foreign currency exchange, while another handed in a list of its China clients, according to sources with direct knowledge.