Interest Rates

Things are not different this time

If you are wondering how bad the subprime crisis in the United States is going to get, former International Monetary Fund chief economist Kenneth Rogoff has a plausible answer. At best, it will be bad. At worst, it will be thoroughly nasty.

Friday, 18 January, 2008, 12:00am

MPF investment funds report 15.9pc gain

The investment funds in the Mandatory Provident Fund scheme, which cover more than two million workers, had an average gain of 15.93 per cent last year, thanks to strong global stock markets, according to a report by Lipper.

12 Jan 2008 - 12:00am

Mainland offers profitable opportunities

Some global investment banks, which shot themselves in the foot with their subprime follies, will spend the next few months trying to figure out their balance sheets and hide their embarrassment.

11 Jan 2008 - 12:00am

Fed cuts seen sending prime rate tumbling towards 5.5pc

The US Federal Reserve may cut rates by as much as 125 basis points this year if the credit market remains tight, say analysts, who believe that could in turn bring Hong Kong's prime lending rates down to as low as 5.5 per cent.

A report by Citi said Hong Kong banks were expected to cut their prime rates and mortgage rates by at least 75 basis points in the first half.

9 Jan 2008 - 12:00am

Merchants Bank says earnings climb 110pc

China Merchants Bank, the mainland's seventh-largest lender, estimates profits for last year surged more than 110 per cent as the country's economic growth prompts companies and consumers to borrow more and encourages sales of wealth management products.

8 Jan 2008 - 12:00am

True or false

1 Per cent comes from a French word meaning for every one hundred.

2 LIBOR means low interest bank offered rate.

3 Credit history is the history of interest rate in a country.

4 Default is the word used when a borrower does not pay his loan back.

5 Principal is the amount of money borrowed initially.

7 Jan 2008 - 12:00am

Banks pass subprime stress test, says HKMA

Hong Kong's banking sector could suffer credit losses of as much as 1.24 per cent of their portfolios if the subprime crisis worsened, pushing the United States into recession, according to a 'stress test' conducted by the Hong Kong Monetary Authority.

20 Dec 2007 - 12:00am

Rational response to buy, not sell, as crisis deepens

The Hong Kong stock market slumped yesterday, following other big markets lower as investors reacted gloomily to central bank efforts to ease the global credit crunch.

14 Dec 2007 - 12:00am

Zhou pledge against inflation points to rise in rates soon

People's Bank of China governor Zhou Xiaochuan has vowed to tackle rising inflation and end negative real interest rates, sending a strong signal that there will be another rate increase.

The remarks by the central bank chief came a day after the statistics bureau said surging food and fuel costs pushed mainland inflation to 6.5 per cent, a 10-year high, last month.

15 Nov 2007 - 12:00am

In a globalised world, mistakes are magnified

When two sides with a love-hate relationship are accused of misdeeds, chances are that both of them are guilty. There is an economic and moral equivalence between the subprime-loans mess created in the United States and the poisoned food, defective toys and other manufactured goods produced in China.

11 Nov 2007 - 12:00am

Banks follow Fed move in cutting rates

Lenders to trim rates 25 basis points

Hong Kong banks will cut interest rates 25 basis points today - matching a move in the United States - after interbank rates dived following an injection of liquidity by the Hong Kong Monetary Authority on Wednesday.

2 Nov 2007 - 12:00am

Mainland pushes securitisation despite subprime turmoil

The mainland will go ahead with plans to introduce securitisation despite the turbulence triggered by the meltdown in US subprime mortgages, People's Bank of China governor Zhou Xiaochuan has indicated.

1 Nov 2007 - 12:00am

HSBC mortgage rate to rise, with other banks likely to follow

Hongkong and Shanghai Banking Corp, the city's biggest lender, will increase mortgage rates for new homebuyers from Monday, a move industry figures believe others will follow.

HSBC is the first big bank to declare a rate increase since the US Federal Reserve cut rates last month. The Bank of China (Hong Kong) and Hang Seng Bank are reviewing their rates.

27 Oct 2007 - 12:00am

Man of property invests full time in own business

Two years ago, Tim Murphy asked himself a life-changing question: would it be better to head a multinational company with thousands of employees or to be his own boss with just a handful of staff?

21 Oct 2007 - 12:00am

Developer unveils Chicago Spire

Plans for the world's tallest residential tower in Chicago will go ahead even though United States property prices are falling at their fastest rate for 37 years.

Dubbed an 'oversized drill bit' by Chicagoans because of its distinctive twisting, tapering form, the 2,000-foot high Chicago Spire is scheduled for completion in 2011.

10 Oct 2007 - 12:00am