HSBC Hiking HK Mortgage Rate Cap by 50 Basis Points and More Asia Real Estate Headlines 

In today’s roundup of regional news headlines, Hong Kong’s main mortgage lender reportedly plans to raise its rate cap for the first time this year, and troubled developer Country Garden faces a deadline to extend a group of RMB bonds. Meanwhile, a Dalian Wanda unit makes payments to two onshore debt holders as China Evergrande delays a decision on its debt restructuring.

HSBC to Raise Hong Kong Mortgage Rates, Adding Pressure on Economy

HSBC, the dominant lender in Hong Kong, is set to raise mortgage rates for borrowers in the Chinese territory, adding pressure on the city’s slumping property market.

The lender is raising the cap on home loans linked to the Hong Kong interbank offered rate by 0.50 percentage points, pushing rates on new loans to 4.125 percent from 3.625 percent effective 18 September, according to two people familiar with the move. Banks last raised the cap in 2022 by 25 basis points. Read more>>

Country Garden Nears Key Deadline on Bid to Extend Onshore Bonds

Distressed Chinese developer Country Garden is entering the final hours of voting by creditors on its request to extend a group of onshore bonds. The outcome could determine if it faces a major repayment demand as soon as Thursday.

The country’s former largest builder is asking to stretch principal payments of eight RMB notes by three years, just days after it dodged a default on dollar securities at the last minute. Read more>>

Debt Holders of Dalian Wanda Unit Receive Payments

Debt holders of a key unit of Dalian Wanda Group said they received full interest and principal payment, Bloomberg reported Saturday, citing people familiar with the matter.

Two holders of an onshore bond issued by Dalian Wanda Commercial Management confirmed the repayment to Bloomberg. Read more>>

China Evergrande Delays Decision on Offshore Debt Restructuring to October

Embattled developer China Evergrande said Friday that it has delayed making a decision on offshore debt restructuring from September to next month.

The company delayed the decision to allow Hong Kong CEG class holders of debt more time to consider its fresh restructuring plan. Read more>>

Hong Kong’s Economic Growth Forecast at Risk, Survey Shows

Economists cut their forecasts for Hong Kong’s economic growth, raising the possibility the government could miss its goal for the year as the post-pandemic recovery runs out of steam.

That’s according to economists surveyed by Bloomberg, who project the Asian financial hub’s GDP to expand by 4 percent this year, less than an earlier median estimate of 4.6 percent. Read more>>

HK Luxury Complex Evacuated After Heavy Rains Trigger Landslide

Hong Kong authorities evacuated some residents from a luxury residential complex after record rains caused a landslide. They are also investigating the possibility of illegal structures and occupation of government land at the property.

Some residents at Redhill Peninsula — a luxury estate in Hong Kong’s Tai Tam district — had to be evacuated Saturday after the landslide affected three houses sitting on a slope, Secretary for Development Bernadette Linn said at a Sunday news briefing. Read more>>

Guangzhou Sets Mortgage Rates Below PBOC Level

Guangzhou has lowered the interest rate floor of mortgage loans for first-time home buyers by 10 basis points below the related policy rate to 4.1 percent, the first Chinese Tier 1 city to do so, mainland media reported.

Though there’s been no official announcement, the capital city of Guangdong province had relaxed its policies a week ago, taking the lead to treat buyers of second homes the same way as first-time buyers, as long as no home was bought in the city previously. Read more>>

India Spends Big on What It Needs Most to Catch Up to China

The financial capital of India has become a colossal construction site. The barriers that try to keep daily life on track in the metropolis on the country’s west coast proclaim: “Mumbai is upgrading.”

A new road being built along the Arabian Sea is aimed at easing congestion in a city where three-lane roads are frequently occupied by five lanes of honking traffic. A rapid-transit metro system is being extended to ease pressure on suburban trains overflowing with people. A rail freight corridor stretching all the way to New Delhi is expected to cut the time it takes to ship goods along the 870 miles to 14 hours — from 14 days. Read more>>

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