Hong Kong’s Monetary Authority Raised Interest Rates 25bps Despite Banking Liquidity at 2008 Lows

The Hong Kong Monetary Authority (HKMA), Hong Kong’s de-facto central bank, raised its benchmark interest rate for a tenth time this year, following the US Federal Reserve, by 25 basis points to 5.55% on Thursday. The latest move brought borrowing costs in the city to the highest level since January 2008. Hong Kong raises rates in line with the Fed due to the Hong Kong Dollar’s peg to the US Dollar. The weakness in the HKD forced the bank to … Continue reading “Hong Kong’s Monetary Authority Raised Interest Rates 25bps Despite Banking Liquidity at 2008 Lows”

Hong Kong’s Monetary Authority Raised Interest Rates 25bps Lockstep with US Federal Reserve

The Hong Kong Monetary Authority (HKMA), Hong Kong’s de-facto central bank, raised its benchmark interest rate for a ninth time this year, following the US Federal Reserve, by 25 basis points to 5.25% on Thursday. The latest move brought borrowing costs in the city to the highest level since January 2008. Hong Kong raises rates in line with the Fed due to the Hong Kong Dollar’s peg to the US Dollar. The city’s top leader John Lee recently said that … Continue reading “Hong Kong’s Monetary Authority Raised Interest Rates 25bps Lockstep with US Federal Reserve”

Hong Kong’s Monetary Authority Raised Interest Rates 25bps Lockstep with US Federal Reserve

The Hong Kong Monetary Authority (HKMA), Hong Kong’s de-facto central bank, raised its benchmark interest rate for an eighth time this year, following the US Federal Reserve, by 25 basis points to 5.00% on Thursday. The latest move brought borrowing costs in the city to the highest level since January 2008. Hong Kong raises rates in line with the Fed due to the Hong Kong Dollar’s peg to the US Dollar. Hong Kong’s economy is not a strong position with … Continue reading “Hong Kong’s Monetary Authority Raised Interest Rates 25bps Lockstep with US Federal Reserve”

Hong Kong Hang Seng Closes Down 14.4% in Worse Year Since 2011

Hong Kong’s blue chip Hang Seng stock market ended down 14.4% to 19,781.4 in 2022, marking the worst year since 2011 with only South Korea’s Kospi down more out of the major Asian stock markets. On the last day of the trading year the Hang Seng was up +0.2% and +1.0% for the week. It has been a tumultuous year for Hong Kong investments and the third straight year of losses for the index. The damage from the implosion of … Continue reading “Hong Kong Hang Seng Closes Down 14.4% in Worse Year Since 2011”

Hong Kong’s Monetary Authority Raised Interest Rates in Lockstep with US Federal Reserve

The Hong Kong Monetary Authority (HKMA), Hong Kong’s de-facto central bank, raised its benchmark interest rate for a seventh time this year, following the US Federal Reserve, by 50 basis points to 4.75% on Thursday. Hong Kong raises rates in line with the Fed due to the Hong Kong Dollar’s peg to the US Dollar. Hong Kong’s economy is not a strong position with the government forecasting a 3.2% gross domestic product contraction for 2022 on weak global demand and … Continue reading “Hong Kong’s Monetary Authority Raised Interest Rates in Lockstep with US Federal Reserve”

Chinese Property Developers Caught in Negative Credit Loop Says Moody’s

Property developers’ funding access will remain constrained in 2022. Offshore corporate bond defaults rose 28 per cent in first three quarters of 2021 and corporate bond defaults in China are expected to continue to rise in 2022 according to Moody’s Investors Service. Highly indebted property developers and enterprises owned by regional and local governments struggle to access new funding after a multi-year borrowing spree. Over the next four quarters, about 8.7 trillion yuan of onshore corporate debt is set to … Continue reading “Chinese Property Developers Caught in Negative Credit Loop Says Moody’s”

Hong Kong’s Mandatory Provident Fund Hit By China Evergrande Contagion Has Worse Performance Since 2018

Hong Kong’s compulsory pension scheme MPF lost each member HK$10,800 (US$1,387) in the third quarter as China regulatory and Evergrande debt crisis converged in a perfect storm to crack markets lower.