Chinese financial giants scale back Middle Eastern risk amid Iran conflict: Bloomberg

Several Chinese financial firms are contracting exposure to Middle Eastern debt, and regulators are tightening oversight as the Iran conflict sparks concerns over China's extensive lending in the region, Bloomberg reported.

One major bank restricted bilateral loans offered to one of the financial institutions under Abu Dhabi's government, while a mid-sized lender is seeking buyers to offload portions of its syndicated loans for Middle Eastern borrowers, the report said.

Asian and Chinese banks are the Gulf's top financiers, with a record high of more than US$15 billion (HK$117.3 billion) in loans last year, among which most of the capital went to Saudi Arabia and the United Arab Emirates, according to data from Bloomberg.