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Business Recorder
23-06-2025
- Business
- Business Recorder
Hong Kong stocks edge down as investors eye funding conditions
SHANGHAI: Hong Kong shares were slightly down on Monday, as investors assessed the potential for tighter cash supplies and monitored tensions in the Middle East for a likely hit to sentiment. China stocks were mixed. China's blue-chip CSI300 Index was down 0.2% by the lunch break, while the Shanghai Composite Index gained 0.2%. Hong Kong benchmark Hang Seng was down 0.1%. The Hong Kong dollar slipped to 7.85 per US dollar on Monday, hitting the weak end of its trading band for the second time since May 2023. The move may prompt the Hong Kong Monetary Authority to drain liquidity from the banking system to support the currency. Hong Kong market liquidity is unlikely to ease further and may even tighten as Hong Kong Interbank Offered Rates (HIBOR) have likely bottomed out and southbound inflows have slowed, said Kevin Liu, strategist at China International Capital Corporation (CICC). The overnight HIBOR, a key barometer of liquidity, hovered near a record low at 0.01777%. 'Short-term liquidity tightening, uncertainties surrounding tariff negotiations, weakening economic data, and delays in policy support could all contribute to increased market volatility,' Liu said. Risk sentiment was further limited as global investors waited to see if Iran would retaliate against US attacks on its nuclear sites, with resulting risks to global activity and inflation. China's Coal Index rose 1.3%. Maritime shipping and port shares broadly rose, with Nangjing Port up to 10%.
New Straits Times
23-06-2025
- Business
- New Straits Times
Hong Kong stocks edge down as investors eye funding conditions
SHANGHAI: Hong Kong shares were slightly down on Monday, as investors assessed the potential for tighter cash supplies and monitored tensions in the Middle East for a likely hit to sentiment. China stocks were mixed. China's blue-chip CSI300 Index was down 0.20 per cent by the lunch break, while the Shanghai Composite Index gained 0.20 per cent. Hong Kong benchmark Hang Seng was down 0.10 per cent. The Hong Kong dollar slipped to 7.85 per US dollar on Monday, hitting the weak end of its trading band for the second time since May 2023. The move may prompt the Hong Kong Monetary Authority to drain liquidity from the banking system to support the currency. Hong Kong market liquidity is unlikely to ease further and may even tighten as Hong Kong Interbank Offered Rates (HIBOR) have likely bottomed out and southbound inflows have slowed, said Kevin Liu, strategist at China International Capital Corporation (CICC). The overnight HIBOR, a key barometer of liquidity, hovered near a record low at 0.01777 per cent. "Short-term liquidity tightening, uncertainties surrounding tariff negotiations, weakening economic data, and delays in policy support could all contribute to increased market volatility," Liu said. Risk sentiment was further limited as global investors waited to see if Iran would retaliate against US attacks on its nuclear sites, with resulting risks to global activity and inflation. China's Coal Index rose 1.30 per cent. Maritime shipping and port shares broadly rose, with Nanjing Port up to 10 per cent. Hua Hong Semi listed in Hong Kong jumped 7 per cent, after media reported that the US government weighs additional restrictions on China, including revoking waivers that allow global chip makers to access American technology in China.
Mint
23-06-2025
- Business
- Mint
Hong Kong stocks edge down as investors eye funding conditions
SHANGHAI, June 23 (Reuters) - Hong Kong shares were slightly down on Monday, as investors assessed the potential for tighter cash supplies and monitored tensions in the Middle East for a likely hit to sentiment. China stocks were mixed. ** China's blue-chip CSI300 Index was down 0.2% by the lunch break, while the Shanghai Composite Index gained 0.2%. Hong Kong benchmark Hang Seng was down 0.1%. ** The Hong Kong dollar slipped to 7.85 per U.S. dollar on Monday, hitting the weak end of its trading band for the second time since May 2023. The move may prompt the Hong Kong Monetary Authority to drain liquidity from the banking system to support the currency. ** Hong Kong market liquidity is unlikely to ease further and may even tighten as Hong Kong Interbank Offered Rates (HIBOR) have likely bottomed out and southbound inflows have slowed, said Kevin Liu, strategist at China International Capital Corporation (CICC). ** The overnight HIBOR, a key barometer of liquidity, hovered near a record low at 0.01777%. ** "Short-term liquidity tightening, uncertainties surrounding tariff negotiations, weakening economic data, and delays in policy support could all contribute to increased market volatility," Liu said. ** Risk sentiment was further limited as global investors waited to see if Iran would retaliate against U.S. attacks on its nuclear sites, with resulting risks to global activity and inflation. ** China's Coal Index rose 1.3%. ** Maritime shipping and port shares broadly rose, with Nangjing Port up to 10%. ** Hua Hong Semi listed in Hong Kong jumped 7%, after media reported that the U.S. government weighs additional restrictions on China, including revoking waivers that allow global chip makers to access American technology in China. (Reporting by Shanghai Newsroom; Editing by Janane Venkatraman)
Business Times
20-06-2025
- Business
- Business Times
Morgan Stanley says Hong Kong's housing sector bottoming out
[HONG KONG] Hong Kong's residential property market is poised for a recovery after enduring a seven-year downturn, according to Morgan Stanley. Home prices in the city are set to bottom out, driven by an influx of mainland Chinese buyers, improved capital markets and a recent plunge in interest rates, analysts led by Praveen Choudhary said in a report dated June 19. 'While we may be early, we see several reasons to be optimistic that we could be at the onset of an up cycle, which could last four to five years,' the analysts said. Mainland buyers are bolstering Hong Kong's residential market, as the city's rental yields now surpass those in tier-one Chinese cities, fuelling increased investment demand. Additionally, a recovering capital market is generating a wealth effect that further supports housing demand, they added. The lower interest rates will also support the market. The one-month Hong Kong Interbank Offered Rate is hovering at the lowest level in three years after plunging last month. However, challenges remain with a surging number of unsold apartment inventory, rising underwater mortgage cases, and an increasing unemployment rate in the city, according to the report. Some developers will still have a hard time operating despite a recovering market. The bank cautions on New World Development because of its liquidity crunch. Morgan Stanley expects home prices to stop their decline and grow 2 per cent in the second half of the year. BLOOMBERG
Epoch Times
26-05-2025
- Business
- Epoch Times
Sharp Drop in HIBOR Unlikely to Save Hong Kong's Real Estate Market Riddled With Structural Challenges: Experts
The one-month Hong Kong Interbank Offered Rate (HIBOR), which affects mortgage rates, hit a The rate change triggered discussion on whether Hong Kong housing prices could bottom out and rebound after having fallen nearly 30 percent from their peak over the past few years, as it will reduce mortgage interest rates, easing pressure on homeowners, which could lure funds to return to the local property market. Shih Wing-ching, chairperson of Hong Kong real estate agency Centaline Group, recently told local media that the agency expects the property market to bottom out and stabilize this year. Investment bank Goldman Sachs predicts that the decline in HIBOR will help increase residential property prices and reduce borrowing costs for developers. It has raised its house price forecasts for the city in 2026 and 2027 to 5 percent and 6 percent, respectively. The bank added that it expects it will take about 20 months to clear the current inventory in the private market of 28,000 unsold existing homes, and about 10 months to reach medium-term inventory levels. But other analysts believe that the decline in HIBOR will only be a short-term technical phenomenon, as the Hong Kong property market is still facing structural challenges that mean it is unlikely to benefit from the low-interest rate environment. Veteran banker Victor Ng Ming-tak refuted Shih's optimistic view on the 'Chaser News' program, believing that the sharp drop in HIBOR is more likely a short-term phenomenon under the current trade war. It is led by shippers rushing to focus on settling U.S. dollars and exchanging Hong Kong dollars before the Aug. 12 tariff negotiation deadline. This has seen excess funds injected into the banking system and pushing down HIBOR. Related Story 5/24/2025 But Ng said that this does not reflect increased demand for borrowing or investment. He also pointed out that it is no longer the case of 'Hong Kong people administering Hong Kong and enjoying a high degree of autonomy.' Hong Kong's attractiveness as an international financial center has declined, and Western capital is moving away from Hong Kong, he said. He believes that the 30 percent drop in housing prices is far from the bottom and that the current situation is a structural adjustment rather than a cyclical fluctuation. Foreign Capital Withdrawal and a Stagnant Economy The Hong Kong property market is facing pressure from all sides. On May 21, Hong Kong real estate giant New World Development Co. Ltd. sought to refinance a loan of HK$87.5 billion (about $11.2 billion). As one of the big four traditional real estate developers in Hong Kong, if New World defaults, it may have an impact on investor confidence and the bank's real estate loan portfolio. The company's revenue has declined for four consecutive years. In 2024, it recorded its first net loss in 20 years. In February 2025, it reported another net loss of HK$6.6 billion ($852 million). Its total debt reached HK$146 billion ($18.7 billion), and its cash reserves were only HK$22 billion ($2.8 billion). Local property tycoons such as Jacinto Tong, CEO of Gale Well Group Ltd., and 'Magnetic Tape King' Chan Ping-chi have successively sold properties to repay their debts, reflecting that real estate investors are facing financial pressure. Weaknesses in the retail and job markets further exacerbated housing market challenges. In 2025, the full closure of the Ocean Empire Food Shop chain led to about 100 employees being owed unpaid wages totaling about HK$15 million ($1.9 million). Other notable examples of closures include UNIQLO's Tsuen Wan store and Eggslut's Causeway Bay store after about two years of operation. Hang Seng Bank also recently announced layoffs, including about 1 percent of its core employees. Senior hedge fund manager Edward Chin Hong Kong's taxi trade is also facing a downturn. As of May 19, the urban taxi license market value has fallen to HK$2.18 million ($280,000), a drop of nearly 70 percent from the high of HK$7.23 million ($930,000) in 2013. Financial expert Simon Lee said in his 'Zhen Talk' program that Hong Kong's falling house prices leading to negative assets is not a problem itself; the fundamental problem lies in the city's deteriorating economic environment. The rising unemployment rate has made it difficult for homeowners to pay their mortgages, and some people have to rent out their properties at low prices or borrow money to get through the tough times, he said. If the economic downturn continues, the financial system will be impacted, he added. Greater Bay Area As Hong Kong's 'one country, two systems' advantage continues to erode, housing prices in Shenzhen, Guangzhou, and other places are also putting pressure on Hong Kong's housing prices. Chinese-language Epoch Times columnist Cai Zi pointed out that the traditional advantage of Hong Kong's 'land being as valuable as gold' is gradually disappearing. As Hong Kong's economy and policies are increasingly aligned with those of mainland China, in theory, the prices of financial assets will gradually converge with those of the mainland, he wrote. Coupled with the fact that Hong Kong's birth rate has fallen to a historic low, retired Hong Kong people are moving north into the mainland to buy property or settle down to cut living costs, further weakening Hong Kong's housing demand, he said. Even if the Hong Kong government is advocating the scheme of 'attracting talents,' professionals who come to Hong Kong to work and earn money for a few years will most likely return home to buy property. 'The same amount of money can easily buy two or three units when they return home,' Cai wrote.
