bodyType

customContents

entityId

printArticlePageQuery

filter

article

body

urlAlias

articleSectionsContent

articleSeoArticle

articleSourceHeaderArticle

contentSchemaRenderContent

contentSubHeadlineContent

contentHeadlineContent

mainImagePrintArticleArticle

authorBlockPrintArticleArticle

contentSponsorTagContent

articlePianoPaywallContent

scmpYoutubeContent

hooksTrackPageViewArticle

query printArticlePageQuery(
  $entityId: String!
  $customContents: [CustomContentInput]
  $bodyType: BodyFormatTypeEnum
) {
  article(filter: {entityId: $entityId}) {
    entityId
    body(customContents: $customContents, type: $bodyType) {
      json
    }
    urlAlias
    ...articleSectionsContent
    ...articleSeoArticle_3o8td4
    ...articleSourceHeaderArticle
    ...contentSchemaRenderContent
    ...contentSubHeadlineContent
    ...contentHeadlineContent
    ...mainImagePrintArticleArticle
    ...authorBlockPrintArticleArticle
    ...contentSponsorTagContent
    ...articlePianoPaywallContent
    ...scmpYoutubeContent
    ...hooksTrackPageViewArticle
    id
  }
}

fragment articlePianoPaywallContent on Content {
  __isContent: __typename
  ...hooksPaywallPromiseContent
}

fragment articleSectionsContent on Content {
  __isContent: __typename
  sections {
    value {
      ...helpersCheckIfNewsSectionInFirstIndexSection
      ...entityLink
      name
      id
    }
  }
}

fragment articleSeoArticle_3o8td4 on Article {
  ...hooksArticleSeoArticle
  ...helpersCheckIsPostiesArticle
  ...helpersGetArticleTypeArticle
  entityId
  publishedDate
  updatedDate
  summary {
    text
  }
  subHeadline {
    text
  }
  body(customContents: $customContents, type: $bodyType) {
    text
  }
  keywords
  sections {
    value {
      name
      id
    }
  }
  topics {
    name
    entityId
    id
  }
  urlAlias
  authors {
    name
    id
  }
  images {
    style(filter: {style: "768x768"}) {
      url
    }
  }
  readingTime
}

fragment articleSourceHeaderArticle on Article {
  urlAlias
  ...entityLink
}

fragment authorBlockPrintArticleArticle on Article {
  ...defaultArticleDateContent
  ...authorNamesArticle
}

fragment authorNameAuthor on Author {
  ...entityLink
  name
  entityUuid
}

fragment authorNamesArticle on Article {
  authorLocations
  authors {
    entityId
    location
    ...authorNameAuthor
    id
  }
}

fragment blockquoteQuoteContent on Content {
  __isContent: __typename
  ...contentShareWidgetContent
}

fragment checkersCheckContentContainsStarlingImageContent on Content {
  __isContent: __typename
  topics {
    entityId
    id
  }
}

fragment contentHeadlineContent on Content {
  __isContent: __typename
  headline
  socialHeadline
  ...contentHeadlineTagContent
  ...helpersUseContentSponsorContent
}

fragment contentHeadlineTagContent on Content {
  __isContent: __typename
  ...hooksContentHeadlineTagContent
}

fragment contentNewsletterWidgetContent on Content {
  __isContent: __typename
  topics {
    relatedNewsletters {
      ...helpersMassageToNewsletterItemNewsletter
      id
    }
    id
  }
  sections {
    value {
      relatedNewsletters {
        ...helpersMassageToNewsletterItemNewsletter
        id
      }
      id
    }
  }
  ... on Article {
    relatedNewsletters {
      ...helpersMassageToNewsletterItemNewsletter
      id
    }
  }
}

fragment contentSchemaRenderContent on Content {
  __isContent: __typename
  ...blockquoteQuoteContent
  ...imageContent
  ...inlineWidgetContent
  ...photoGalleryWidgetContent
  ...scmpYoutubeContent
}

fragment contentShareWidgetContent on Content {
  __isContent: __typename
  entityId
  urlAlias
  shortUrl
  socialHeadline
  headline
}

fragment contentSponsorTagContent on Content {
  __isContent: __typename
  ...helpersUseContentSponsorContent
}

fragment contentSubHeadlineContent on Content {
  __isContent: __typename
  subHeadline {
    json
  }
  summary {
    json
  }
  ...contentSchemaRenderContent
}

fragment defaultArticleDateContent on Content {
  __isContent: __typename
  ...hooksArticleDateUtilsContent
}

fragment entityLink on BaseWithApplicationAndUrlAlias {
  __isBaseWithApplicationAndUrlAlias: __typename
  __typename
  entityId
  entityUuid
  urlAlias
  urlRedirect {
    toUrl
    id
  }
  application {
    entityId
    id
  }
  ... on Section {
    fullSectionPath {
      entityId
      id
    }
    parentSection
  }
  ...helpersAppBarVariantBase
  ...helpersApplicationBase
  ...helpersCheckIsPlusArticle
  ...helpersStyleSectionContent
}

fragment helpersAppBarVariantBase on BaseWithApplicationAndUrlAlias {
  __isBaseWithApplicationAndUrlAlias: __typename
  ...helpersCheckIsLiveArticle
  ...helpersCheckIsPlusPage
  ...helpersCheckIsPostiesArticle
  ...helpersCheckIsPostiesPage
  ...helpersCheckIsPostMagazineArticle
  ...helpersCheckIsStyleArticle
  ...helpersSectionContent
  ...helpersStyleSectionContent
}

fragment helpersApplicationBase on BaseWithApplicationAndUrlAlias {
  __isBaseWithApplicationAndUrlAlias: __typename
  ...helpersCheckIsPostiesArticle
  ...helpersCheckIsPostiesPage
  ...helpersCheckIsPlusPage
}

fragment helpersCheckIfNewsSectionInFirstIndexSection on Section {
  name
}

fragment helpersCheckIsAmpEnabledArticle on Article {
  entityId
  types {
    value {
      entityId
      id
    }
  }
  sections {
    value {
      entityId
      id
    }
  }
  disableOffPlatformContent
  sponsorType
  published
  ...helpersCheckIsPlusArticle
  ...helpersCheckIsPostiesArticle
}

fragment helpersCheckIsLiveArticle on Article {
  flattenTypeIds
  liveArticle {
    status
    id
  }
}

fragment helpersCheckIsMainTopicContent on Content {
  __isContent: __typename
  topics {
    entityId
    id
  }
}

fragment helpersCheckIsPlusArticle on Content {
  __isContent: __typename
  ... on Article {
    paywallTypes {
      entityUuid
      id
    }
  }
}

fragment helpersCheckIsPlusPage on Page {
  urlAlias
}

fragment helpersCheckIsPostMagazineArticle on Article {
  sections {
    value {
      entityId
      id
    }
  }
}

fragment helpersCheckIsPostiesArticle on Article {
  sections {
    value {
      entityId
      id
    }
  }
}

fragment helpersCheckIsPostiesPage on Page {
  urlAlias
}

fragment helpersCheckIsStyleArticle on Content {
  __isContent: __typename
  sections {
    value {
      entityId
      id
    }
  }
}

fragment helpersGetArticleTypeArticle on Content {
  __isContent: __typename
  ... on Article {
    types {
      value {
        entityId
        id
      }
    }
  }
}

fragment helpersMassageToNewsletterItemNewsletter on Newsletter {
  entityId
  name
  alternativeName
  description {
    text
  }
  summary {
    text
  }
  homepageDescription {
    text
  }
}

fragment helpersSanitizeArticleTypeEntityIdsArticle on Article {
  types {
    value {
      entityId
      id
    }
  }
}

fragment helpersSanitizeAuthorTypesArticle on Article {
  authors {
    types
    id
  }
}

fragment helpersSanitizedAuthorEntityIdsArticle on Article {
  authors {
    entityId
    id
  }
}

fragment helpersSectionContent on Section {
  fullSectionPath {
    entityId
    id
  }
}

fragment helpersStyleSectionContent on Section {
  fullSectionPath {
    entityId
    id
  }
}

fragment helpersUseContentSponsorContent on Content {
  __isContent: __typename
  topics {
    entityId
    sponsor {
      ...sponsorTagSponsor
      name
      type
      id
    }
    id
  }
  ... on Article {
    sponsorType
  }
  ...helpersCheckIsMainTopicContent
}

fragment hooksArticleDateUtilsContent on Content {
  __isContent: __typename
  createdDate
  publishedDate
  updatedDate
}

fragment hooksArticleSeoArticle on Article {
  ...helpersCheckIsPostiesArticle
  ...helpersCheckIsPostMagazineArticle
  ...helpersCheckIsStyleArticle
  ...hooksContentHeadlineTagContent
  ...helpersCheckIsAmpEnabledArticle
  entityId
  headline
  socialHeadline
  types {
    value {
      entityId
      id
    }
  }
  authors {
    entityId
    id
  }
  images {
    generic_og: style(filter: {style: "og_image_scmp_generic"}) {
      url
    }
    styles(filter: {styles: ["og_image_posties_article", "og_postmag", "og_image_style", "og_image_scmp_analysis", "og_image_scmp_explainer", "og_image_scmp_editorial", "og_image_scmp_fact_check", "og_image_scmp_debate", "og_image_scmp_live", "og_image_scmp_obituary", "og_image_scmp_opinion", "og_image_scmp_review", "og_image_scmp_series", "og_image_scmp_generic"]}) {
      url
      style
    }
    type
  }
  urlAlias
}

fragment hooksContentHeadlineTagContent on Content {
  __isContent: __typename
  __typename
  ... on Article {
    types {
      value {
        name
        entityId
        description {
          text
        }
        id
      }
    }
    ...helpersCheckIsStyleArticle
  }
  flag
  sections {
    value {
      name
      id
    }
  }
  ...hooksContentHelperContent
}

fragment hooksContentHelperContent on Content {
  __isContent: __typename
  ...helpersSanitizeArticleTypeEntityIdsArticle
  ...helpersSanitizeAuthorTypesArticle
  ...helpersSanitizedAuthorEntityIdsArticle
  flag
}

fragment hooksPaywallPromiseContent on Content {
  __isContent: __typename
  entityId
  ...helpersCheckIsPostiesArticle
}

fragment hooksTrackPageViewArticle on Article {
  entityId
  publishedDate
  headline
  sections {
    value {
      name
      id
    }
  }
  urlAlias
  authors {
    name
    id
  }
  entityUuid
}

fragment imageContent on Content {
  __isContent: __typename
  headline
  ...checkersCheckContentContainsStarlingImageContent
}

fragment inlineWidgetContent on Content {
  __isContent: __typename
  ...contentNewsletterWidgetContent
}

fragment mainImagePrintArticleArticle on Article {
  images {
    title
    url
    isSlideshow
    size_652x446: style(filter: {style: "652x446"}) {
      url
    }
  }
}

fragment photoGalleryDialogContent on Content {
  __isContent: __typename
  __typename
  ...contentShareWidgetContent
}

fragment photoGalleryWidgetContent on Content {
  __isContent: __typename
  ...photoGalleryDialogContent
}

fragment scmpYoutubeContent on Content {
  __isContent: __typename
  entityId
  urlAlias
  publishedDate
}

fragment sponsorTagSponsor on Sponsor {
  name
  type
  images {
    url
  }
}


sections

types

disableOffPlatformContent

sponsorType

published

headline

socialHeadline

authors

images

publishedDate

updatedDate

summary

subHeadline

keywords

topics

readingTime

authorLocations

entityUuid

Enoch Yiu

Mia Castagnone

Hongkongers with mortgages should brace themselves for higher monthly payments, as banks are set to increase the prime rate for the first time in four years in response to an expected rate increase later this week by the US Federal Reserve, which is determined to curb 40-year-high inflation, according to analysts.
Hong Kong banks last increased the prime rate by 0.125 percentage points in September 2018, which came after nine increases of the US interest rate between 2015 and 2018. But the head of the Hong Kong Monetary Authority and financial analysts all believe the local rise will arrive much quicker this time.
“Compared with the last rate-hike cycle, the market generally expects the US rate-hike cycle this time will be quicker and more aggressive,” said Eddie Yue Wai-man, chief executive of the HKMA, in a statement posted on the HKMA website on Friday.
The US Fed is expected to raise the interest rate by 75 basis points on Thursday to curb inflation. This will bring the key rate to a range of 2.25 per cent to 2.5 per cent, as the US central bank acts with urgency to rein in inflation, said Kirk Wong, global market and FX strategist at Everbright Securities International.

Some market participants are even predicting a full point rise, after US inflation rose to a fresh 40-year high of 9.1 per cent in June.
Hong Kong commercial banks might well increase the prime rate some weeks after the July rate rise, Wong said.
“The local commercial banks increased their prime rate when the US Fed rate increased to 2.5 per cent in September 2018, so it may be time for local banks to increase the prime rate when the US Fed reaches that level,” he said.

The prime rate stands at 5 per cent at HSBC, its subsidiary Hang Seng Bank, and Bank of China Hong Kong. Standard Chartered Bank and most other local lenders have their prime lending rate at 5.25 per cent.
Half of 12 economists surveyed by Bloomberg expect Hong Kong’s prime rate to rise by 25 basis points or less by year’s end, while four predict a 50-basis point increase. The remaining two economists expect a rise of 75 to 100 basis points.
A customer with a HK$5 million loan with a 30-year term will have to pay HK$656 (US$83.60) more each month following a 25-basis-point increase, and HK$1,324 more following a 75-basis-point increase, according to data from mReferral Corporation.
Investors rush to buy property despite biggest rate increase in 22 years
Should the prime rate rise a full-percentage point, this homeowner would see their monthly repayment increase by HK$2,004.
“The interest rate in the interbank market has risen a lot, while Hibor [Hong Kong interbank offered rate]-linked mortgage loans may soon rise to reach the cap,” said Eric Tso Tak-ming, chief vice-president of mReferral. “This has added pressure for banks to increase their prime rate as soon as the end of August.”
Ahead of the expected interest rate hike this week, homeowners are offloading their units at a loss. A 588 sq ft flat in Lee King Building in Yuen Long changed hands at a loss of HK$900,000, 15 per cent less than the original price, according to Centaline Property Agency.
“The sentiment in the property market is sluggish, and some owners are selling at below-market prices, and even leaving the market at a loss, in order to cash in as soon as possible,” said Ken Wong, deputy regional sales manager at Centaline.
The one-month Hibor rose to two-year high at 1.01 per cent on Friday, versus 0.14 per cent at the start of the year.
HKMA’s Yue believes the HKMA will need to intervene more frequently and on a larger scale this time than it did in the last rate-rise cycle, while the aggregate balance – the sum of balances in clearing accounts maintained by banks with the monetary authority – will also drop at a quicker pace.
The authority has stepped into the market 23 times this year, buying a total of HK$172.64 billion and selling US$21.99 billion amid persistent capital outflows, HKMA data showed. Previous high-water marks saw the authority buy HK$103.48 billion in 2018 and HK$22.13 billion in 2019.

The authority has stepped into the market nine times during the past two weeks to defend the local currency peg as the market braced for over HK$68 billion more in capital flight ahead of the expected US rate rise this Thursday, the fourth increase this year.
The local currency has been pegged to the US dollar at HK$7.80 since 1983. The HKMA is obliged to keep the local dollar trading within a band of HK$7.75 to HK$7.85, and intervenes whenever the value veers out of that range.
The latest rounds of intervention reduced the aggregate balance to HK$165.26 billion on July 22, compared with HK$337.53 billion before the year’s first intervention on May 11.
When the balance drops to the threshold of HK$150 billion, banks will respond by increasing their prime rates, traders said.
“If the aggregate balance goes down very quickly in the next week, then banks might have the pressure to raise the interest rate immediately after the Federal Reserve meeting,” said Ricky Choi Wing-hung, chief economist at Bank of East Asia. “But if not, then it will rise a little bit later, likely before the September meeting.”
Emigration, rising rates weigh on Hong Kong’s lived-in home market
The Federal Reserve is likely to raise the interest rate at least 50 basis points in September and another 25 basis points in both November and December, bringing the Fed rate to 3.5 per cent at the end of this year.
Hong Kong’s property market will remain steady because of stable supply and sound domestic economic recovery, Choi added.


Hong Kong braces for increase in prime interest rate after imminent US Fed action to rein in 40-year-high inflation

A woman walks past property listings in the window of a real estate agency in Hong Kong on May 13, 2022. Photo: AFP

Novo Land, a development in Tuen Mun built by Sun Hung Kai Properties, pictured on July 13, 2022. Photo: Xiaomei Chen

Eddie Yue Wai-man, CEO of the Hong Kong Monetary Authority (HKMA), pictured at HKMA in Central on June 10, 2022. Photo: SCMP/ Xiaomei Chen

The Federal Reserve Building in Washington. Photo: Dreamstime/TNS

Business

The head of the HKMA and analysts believe the local rate rise will be quicker this time after an expected increase of 75 basis points by the US Fed on Thursday
Hongkongers with mortgages would face higher payments amid the first increase in the local prime rate in four years


The head of the HKMA and analysts believe the local prime lending rate will rise for the first time in four years after an expected increase of 75 basis points by the US Fed later this week.


Hong Kong Monetary Authority (HKMA)

Banking & finance

Hong Kong braces for increase in prime interest rate after imminent US Fed action to rein in 40-year-high inflation

The head of the HKMA and analysts believe the local rate rise will be quicker this time after an expected increase of 75 basis points by the US Fed on Thursday Hongkongers with mortgages would face higher payments amid the first increase in the local prime rate in four years

The head of the HKMA and analysts believe the local rate rise will be quicker this time after an expected increase of 75 basis points by the US Fed on Thursday

Hongkongers with mortgages would face higher payments amid the first increase in the local prime rate in four years