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  • Mitsubishi UFJ Securities Holdings said Tuesday it could face a $300 million loss in its dealings with a US client in what could be the latest deficit caused by last week's massive stocks sale. The Japanese brokerage house, a unit of Mitsubishi UFJ Financial Group, said its European subsidiary was involved in "an event" on March 26 that could lead to a financial loss. Without naming the client, the Tokyo-based firm said the $300 million loss would not affect its businesses, adding: "This estimate is subject to change depending on the unwinding of the transactions and market price fluctuation." The announcement came after top global banks Nomura of Japan and Switzerland's Credit Suisse warned Monday they could face significant losses following reports of their exposure to a US fund that sold billions in stocks last week. Neither bank named the client but the warnings follow a Bloomberg News report that a little-known fund on Friday sold more than $20 billion in stocks from US media and Chinese companies listed in New York. The unusually large sale by Archegos Capital Management, which looks after businessman Bill Hwang's fortune, was carried out directly by major houses Morgan Stanley and Goldman Sachs. Among the companies sold were top Chinese names such as Baidu Inc, Tencent Music Entertainment Group and Vipshop Holding -- all under pressure at home as Beijing reins in the tech sector -- plus US giants such as ViacomCBS and Discovery. si/kaf/rbu
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  • Mitsubishi UFJ warns of $300m loss in dealings with US client
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