According to a report by Bloomberg News on Tuesday, UBS Group has suspended the acceptance of certain bonds and shares from Hong Kong property developer New World Development as collateral for margin loans in recent weeks.

It was also noted in the report that Citigroup and HSBC Holdings' private banking divisions had ceased lending against New World securities some months ago, as per sources familiar with the situation.

Requests for comments from Reuters to New World Development, UBS Group, Citigroup, and HSBC went unanswered at the time of reporting.

New World Development, helmed by billionaire Henry Cheng and family, has been embroiled in leadership challenges, with Adrian Cheng resigning as CEO in late September, followed by Eric Ma stepping down just two months later.

In 2024, the company reported its first annual loss as it grappled with significant debt, reaching HK$199 billion ($25.61 billion), making it the most indebted among its Hong Kong counterparts, according to JPMorgan data from July.