Chartered sees lending war going on

Standard Chartered Bank expects heavy competition in mortgage lending will not abate before early next year.

Peter Wong Tung-shing, the bank's head of consumer banking for Hong Kong and the mainland, said competition would ease only if lending demand recovered as the recent drop in property transactions had pushed banks to compete in a smaller market.

Hong Kong Monetary Authority figures showed the fierce competition was reflected in the surge in mortgage refinancing activity.

The HKMA warned banks' aggressive marketing tactics for mortgage refinancing could be unhealthy.

Last week, deputy chief executive David Carse said the HKMA had not ruled out issuing guidelines on refinancing if the banking industry requested it but Mr Wong added that would be difficult as different sized banks would have different demands.