Hong Kong’s tightening liquidity may increase mortgage rates in China, said the head of HSBC Holdings Plc in Asia, sending real estate sentiment into an even faster downward spiral.
HSBC raised its mortgage rate for the Hong Kong interbank offer rate (Hibor) to between 2.3 and 2.7 percent over the weekend, up from 1.8 to 2.3 percent previously.
Peter Wong, Chief Executive at HSBC (Asia), said the increase was a result of the rising cost of capital.
Hong Kong’s real estate market has started to show signs of slowing down, as the measures introduced by the government to curb property prices have begun taking effect. Sun Hung Kai Properties Ltd and other developers have agreed that sales may soon decline.
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