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HKMA, HSBC allay fears about Hong Kong’s loan risks amid property glut

Hong Kong’s de facto central bank and the city’s largest lender have issued separate statements to assuage concerns about a glut in the commercial property market, saying that the local banking system remained robust and well-capitalised. Risks associated with commercial real estate (CRE) loans were “manageable”, as the classified loan ratio – a measure of borrowings deemed substandard, doubtful, or at loss – shrank slightly to 1.97 per cent in the second quarter, from 1.98 per cent at the end...


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