Wall Street Banks Prep for Grim China Scenarios Over Taiwan
- Insurers hike costs for political risk policies tied to China
- Withdrawal would represent sharp about-face for global firms
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Global financial firms, still smarting from multi-billion dollar losses in Russia, are now reassessing the risks of doing business in Greater China after an escalation of tensions over Taiwan.
Lenders including Societe Generale SA, JPMorgan Chase & Co., UBS Group AG have asked their staff to review contingency plans in the past few months to manage exposures, according to people familiar with the matter. Global insurers, meanwhile, are backing away from writing new policies to cover firms investing in China and Taiwan, and costs for political risk coverage have soared more than 60% since Russia’s invasion of Ukraine.