https://www.scmp.com/rss/326072/feed An interest rate is the amount charged by banks to borrowers for any loan, which is a percentage of the principal. It is an important monetary tool for central banks to control inflation and boost economic growth. The Hong Kong Monetary Authority maintains its official base rate in lockstep with the US Federal Reserve because the Hong Kong dollar has been pegged with the US currency since 1983. Hong Kong commercial banks can decide when to change their prime lending rate and deposit rate, which... en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com Cheryl Arcibal Cheryl Arcibal Hong Kong’s lived-in home prices jumped 1.4 per cent to a 28-month high in March, according to the latest official data on Tuesday, with the property market remaining resilient despite uncertainties created by the US-Israel war on Iran. The widely watched index released by the Rating and Valuation Department (RVD) stood at 312.8 last month, the highest since 315.6 in November 2023. The increase reflected a sustained recovery that began 11 months ago, showing a cumulative price gain of nearly 9.2... https://www.scmp.com/business/article/3351644/hong-kong-home-prices-rise-higher-march-rents-peak-fifth-month-straight?utm_source=rss_feed https://www.scmp.com/business/article/3351644/hong-kong-home-prices-rise-higher-march-rents-peak-fifth-month-straight?utm_source=rss_feed Tue, 28 Apr 2026 04:38:44 +0000 Ralph Jennings Ralph Jennings China’s population is projected to fall by about 60 million over the next decade, threatening economic activity in wealthier coastal provinces and putting growing pressure on the public pension system, according to recent analyst reports. Research firm Rhodium Group estimated that the world’s second-most populous country, after India, could lose the equivalent of nearly France’s entire population over the coming 10 years. In a nation of 1.41 billion people, a decline of this scale would weigh on... https://www.scmp.com/economy/china-economy/article/3351597/china-faces-france-sized-demographic-loss-threatens-coastal-growth-analysts?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3351597/china-faces-france-sized-demographic-loss-threatens-coastal-growth-analysts?utm_source=rss_feed Tue, 28 Apr 2026 00:00:15 +0000 Nicholas Spiro Nicholas Spiro In March 2024, the Bank of Japan raised interest rates for the first time since 2007, lifting borrowing costs out of negative territory and calling time on decades of ultra-loose monetary policy as Japan emerged from a long period of entrenched deflation. At the time, inflation had been above the central bank’s 2 per cent target for 22 months. Fast forward to today, and inflationary pressures continue to build. Although headline inflation fell to 1.3 per cent in February, this was because of the... https://www.scmp.com/opinion/asia-opinion/article/3351088/why-japans-central-bank-caught-between-rock-and-hard-place?utm_source=rss_feed https://www.scmp.com/opinion/asia-opinion/article/3351088/why-japans-central-bank-caught-between-rock-and-hard-place?utm_source=rss_feed Thu, 23 Apr 2026 08:30:08 +0000 Reuters Reuters Federal Reserve chief nominee Kevin Warsh ⁠called for “regime change” at the US central bank, including a new approach for controlling inflation and a communications ⁠overhaul that may discourage his colleagues from saying too much about the direction of monetary policy. Warsh’s comments during his confirmation hearing before the Senate Banking Committee left key questions about his nomination unresolved. Republican Senator Thom Tillis used his full time to explain why he would not vote for the... https://www.scmp.com/news/world/united-states-canada/article/3350927/kevin-warsh-trumps-pick-fed-chief-calls-regime-change-us-central-bank?utm_source=rss_feed https://www.scmp.com/news/world/united-states-canada/article/3350927/kevin-warsh-trumps-pick-fed-chief-calls-regime-change-us-central-bank?utm_source=rss_feed Tue, 21 Apr 2026 17:46:27 +0000 SCMP Editorial SCMP Editorial The yuan is rapidly expanding as a global financing source. Just this month, Kazakhstan’s sovereign wealth fund, Samruk-Kazyna, became the first financial institution from Central Asia to issue yuan-denominated debt – worth 3 billion yuan (US$440 million) – in China’s onshore market. Meanwhile, in a first for a euro-zone country, Portugal sold 1.99 billion yuan of eight-year debt in the offshore yuan bond market. The country’s debt agency said the securities, nicknamed dim sum bonds, aim to... https://www.scmp.com/opinion/comment/article/3350441/chinese-yuan-slowly-surely-cutting-us-dollar-dominance?utm_source=rss_feed https://www.scmp.com/opinion/comment/article/3350441/chinese-yuan-slowly-surely-cutting-us-dollar-dominance?utm_source=rss_feed Sun, 19 Apr 2026 23:15:10 +0000 Cheryl Arcibal Cheryl Arcibal Hong Kong homebuyers’ strong demand for new flats extended a streak of brisk sales for developers with one project selling out in a single day, underscoring the city’s broader recovery in housing prices. All 88 units at the Pavilia Farm III project by New World Development and MTR Corporation in Sha Tin were sold on Saturday, prompting the developers to put 75 more flats on sale later that night. Elsewhere in Kai Tak, 133 units of KT Marina II were snapped up over the weekend, according to... https://www.scmp.com/property/hong-kong-china/article/3350638/hong-kong-homebuyers-extend-sell-out-streak-amid-renewed-confidence-market?utm_source=rss_feed https://www.scmp.com/property/hong-kong-china/article/3350638/hong-kong-homebuyers-extend-sell-out-streak-amid-renewed-confidence-market?utm_source=rss_feed Sun, 19 Apr 2026 13:10:25 +0000 Cheryl Arcibal Cheryl Arcibal Hong Kong homebuyers flocked to the second round of new flat sales at the La Mirabelle I project in Tseung Kwan O on Tuesday, underscoring continuing demand for property amid escalating tensions in the Middle East. Of the 168 units offered via a price list, 152 had been sold as of 6.40pm, according to Sino Land. A further 86 flats were made available by tender. Sino is one of the project’s co-developers. The launch generated more than HK$1.1 billion (US$140 million) in revenue, the developer... https://www.scmp.com/business/article/3349223/hong-kong-property-launch-sees-brisk-sales-buyers-unfazed-trumps-iran-warning?utm_source=rss_feed https://www.scmp.com/business/article/3349223/hong-kong-property-launch-sees-brisk-sales-buyers-unfazed-trumps-iran-warning?utm_source=rss_feed Tue, 07 Apr 2026 05:26:19 +0000 Cheryl Arcibal Cheryl Arcibal Hong Kong developers are raising prices of new homes this week following sold-out launches in recent days, further testing the appetite of homebuyers amid geopolitical and interest rate uncertainties. Henderson Land Development put another 39 units at its Chester project in Hung Hom on sale on Monday, with 25 homes finding buyers, according to agents. With an average discounted price of HK$22,198 (US$2,831) per square foot, the units were priced 4.57 per cent higher than the 123 units that sold... https://www.scmp.com/business/article/3349172/hong-kong-developers-test-homebuyers-modest-price-increases-after-sell-outs?utm_source=rss_feed https://www.scmp.com/business/article/3349172/hong-kong-developers-test-homebuyers-modest-price-increases-after-sell-outs?utm_source=rss_feed Mon, 06 Apr 2026 10:30:44 +0000 Nicholas Spiro Nicholas Spiro Last month, Brent crude, the international oil benchmark, experienced its largest monthly rise since the launch of the futures contract in 1988 as the war in Iran caused an unprecedented disruption to global energy flows. Brent surged 63 per cent to US$118 per barrel, exceeding the previous record increase in September 1990 following Iraq’s invasion of Kuwait. The price shock has been even more dramatic in refined products. Jet fuel costs have more than doubled since the war began, with diesel... https://www.scmp.com/opinion/asia-opinion/article/3348744/asian-central-banks-largely-powerless-face-iran-war-energy-shock?utm_source=rss_feed https://www.scmp.com/opinion/asia-opinion/article/3348744/asian-central-banks-largely-powerless-face-iran-war-energy-shock?utm_source=rss_feed Thu, 02 Apr 2026 08:30:07 +0000 Cheryl Arcibal Cheryl Arcibal Hong Kong homebuyers snapped up new launches on Tuesday as developers accelerated sales amid concerns over slower rate cuts and geopolitical tensions in the Middle East. By about 3.50pm, all 254 flats released at the La Mirabelle project in Tseung Kwan O had been sold, according to market agents. “Today’s positive sales results at La Mirabelle is a vote of confidence for the Hong Kong residential market,” said Daryl Ng, chairman of Sino Group. “The Hong Kong residential market fundamentals are... https://www.scmp.com/business/article/3348547/hong-kong-homebuyers-pile-new-launches-despite-rate-jitters-and-middle-east-tensions?utm_source=rss_feed https://www.scmp.com/business/article/3348547/hong-kong-homebuyers-pile-new-launches-despite-rate-jitters-and-middle-east-tensions?utm_source=rss_feed Tue, 31 Mar 2026 09:49:52 +0000 Cheryl Arcibal Cheryl Arcibal Hong Kong developers on Friday released 222 new flats in Kowloon, the city’s largest batch of units on a single day since buyers were warned about the uncertain direction of interest rates. K&K Property launched 122 one-bedroom units at foto+, a single residential tower in Mong Kok close to Olympic station, while Wang On Properties put 100 units up for sale at the Connext project in Wong Tai Sin. By 7pm Friday, 103 of the foto+ units had found buyers. Sales at Connext, meanwhile, kicked off at... https://www.scmp.com/business/article/3348175/hong-kong-developers-test-market-222-units-released-amid-interest-rate-uncertainty?utm_source=rss_feed https://www.scmp.com/business/article/3348175/hong-kong-developers-test-market-222-units-released-amid-interest-rate-uncertainty?utm_source=rss_feed Fri, 27 Mar 2026 11:30:11 +0000 Cheryl Arcibal Cheryl Arcibal Hong Kong’s lived-in home prices rose 1.6 per cent in February, marking the 11th straight month of positive movement for the residential property segment, as the city’s rents scaled another peak, according to official data. Since reversing a downward trend in April, second-hand home prices had climbed nearly 8 per cent so far, bringing the official index to a 22-month high, according to data released on Friday by the Rating and Valuation Department. The latest monthly increment was also larger... https://www.scmp.com/business/article/3348081/hong-kong-home-prices-surge-near-two-year-high-iran-war-clouds-outlook?utm_source=rss_feed https://www.scmp.com/business/article/3348081/hong-kong-home-prices-surge-near-two-year-high-iran-war-clouds-outlook?utm_source=rss_feed Fri, 27 Mar 2026 04:04:50 +0000 Nicholas Spiro Nicholas Spiro Last week, the energy shock caused by the war in Iran showed signs of becoming a full-blown financial and economic crisis. The attacks on energy infrastructure across the Middle East, coupled with soaring prices of crucial refined petroleum products such as diesel and jet fuel, forced investors to start pricing in a prolonged disruption to supply and a contraction in demand. Even if the Strait of Hormuz reopens sooner than anticipated, the scale of the damage to energy assets in the Persian Gulf... https://www.scmp.com/opinion/asia-opinion/article/3347540/war-induced-interest-rate-shocks-unlikely-upset-asias-property-markets?utm_source=rss_feed https://www.scmp.com/opinion/asia-opinion/article/3347540/war-induced-interest-rate-shocks-unlikely-upset-asias-property-markets?utm_source=rss_feed Mon, 23 Mar 2026 08:30:09 +0000 Cheryl Arcibal Cheryl Arcibal Hongkonger Katie Chan was hoping to buy a flat to live in, and although the 37-year-old accountant was in no rush, the potential longer pause in interest rate cuts could delay her decision. For Chan, the ideal mortgage would be if the one-month Hong Kong interbank offered rate (Hibor) fell below 1.95 per cent, but this year the key driver for local mortgage costs and corporate borrowing rates had only dropped to as low as 2.02 per cent, according to data tracked by the Hong Kong Association of... https://www.scmp.com/business/article/3347469/potential-rate-cut-pause-geopolitical-tensions-may-cloud-hong-kong-property-recovery?utm_source=rss_feed https://www.scmp.com/business/article/3347469/potential-rate-cut-pause-geopolitical-tensions-may-cloud-hong-kong-property-recovery?utm_source=rss_feed Sun, 22 Mar 2026 23:30:16 +0000 Yeon Woo Lee Yeon Woo Lee Gold prices have continued to weaken despite escalating tensions in the US-Israel conflict with Iran, breaking from the metal’s traditional role as a geopolitical hedge, as fading expectations of interest rate cuts and a stronger US dollar weigh on sentiment, analysts said. The metal has declined about 15 per cent since a brief surge on March 2, when prices climbed to around US$5,300 per ounce following US and Israeli strikes on Iran. A modest rebound driven by technical buying on Friday did... https://www.scmp.com/business/commodities/article/3347473/gold-slides-hawkish-fed-and-strong-us-dollar-override-geopolitical-fears?utm_source=rss_feed https://www.scmp.com/business/commodities/article/3347473/gold-slides-hawkish-fed-and-strong-us-dollar-override-geopolitical-fears?utm_source=rss_feed Sun, 22 Mar 2026 09:00:27 +0000 Enoch Yiu Enoch Yiu The Hong Kong Monetary Authority (HKMA) has warned the public to beware of interest rate risks after it kept its base rate unchanged, following a similar move by the US Federal Reserve, as the city’s de facto central bank said the Middle East conflict has added to the uncertainty over the pace of rate cuts this year. HKMA maintained the city’s base rate at 4 per cent on Thursday. Hours earlier, the Fed kept its target rate in the range of 3.5 per cent to 3.75 per cent, after the second meeting... https://www.scmp.com/business/banking-finance/article/3347088/hong-kong-follows-federal-reserve-keep-base-rate-unchanged-amid-middle-east-war?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3347088/hong-kong-follows-federal-reserve-keep-base-rate-unchanged-amid-middle-east-war?utm_source=rss_feed Wed, 18 Mar 2026 23:16:04 +0000 Agence France-Presse Agence France-Presse The US Federal Reserve kept interest rates unchanged on Wednesday as expected, in defiance of President Donald Trump as the world’s largest economy battles stubborn inflation, weak labour demand and an “uncertain” outlook due to the war in Iran. The Fed’s 11-1 vote kept rates steady at a range between 3.50 per cent and 3.75 per cent, with officials flagging one expected rate cut by the end of the year. “The implications of developments in the Middle East for the US economy are uncertain,” the... https://www.scmp.com/news/world/united-states-canada/article/3347084/us-fed-defies-trump-keep-interest-rates-unchanged-amid-iran-war-concerns?utm_source=rss_feed https://www.scmp.com/news/world/united-states-canada/article/3347084/us-fed-defies-trump-keep-interest-rates-unchanged-amid-iran-war-concerns?utm_source=rss_feed Wed, 18 Mar 2026 18:52:46 +0000 Reuters Reuters US President Donald Trump’s administration ⁠has asked a judge to reconsider his ruling that has effectively blocked a criminal investigation into US Federal Reserve Chairman Jerome Powell, according to court documents made public on Monday. Washington-based US District Judge James ‌Boasberg in a ruling unsealed on Friday blocked subpoenas issued by federal prosecutors in January seeking information about cost overruns in renovations at the Fed’s headquarters and Powell’s testimony to Congress... https://www.scmp.com/news/world/united-states-canada/article/3346803/trump-administration-urges-judge-revisit-ruling-blocking-subpoenas-jerome-powell?utm_source=rss_feed https://www.scmp.com/news/world/united-states-canada/article/3346803/trump-administration-urges-judge-revisit-ruling-blocking-subpoenas-jerome-powell?utm_source=rss_feed Mon, 16 Mar 2026 19:13:22 +0000 Associated Press Associated Press A federal judge on Friday quashed US Justice Department subpoenas issued to the Federal Reserve in January, a severe blow to an investigation that has already attracted strong criticism on Capitol Hill. Judge James Boasberg said that a “mountain of evidence suggests” that the purpose of the subpoenas was simply to pressure the Fed to cut its key interest rate, as US President Donald Trump has repeatedly demanded. Fed Chair Jerome Powell revealed the investigation on January 11, prompting Senator... https://www.scmp.com/news/world/united-states-canada/article/3346568/judge-quashes-subpoenas-fed-chair-says-investigation-was-politically-motivated?utm_source=rss_feed https://www.scmp.com/news/world/united-states-canada/article/3346568/judge-quashes-subpoenas-fed-chair-says-investigation-was-politically-motivated?utm_source=rss_feed Fri, 13 Mar 2026 20:17:52 +0000 Zhang Shidong Zhang Shidong US President Donald Trump’s nomination of Kevin Warsh to head the Federal Reserve is likely to add more volatility to global financial markets, as his historical stance against financial easing could complicate the Fed’s decision-making in terms of monetary easing, according to analysts. The White House nomination came a month after Trump said the former Fed governor, who opposed rate cuts during the 2008 global financial crisis, would be his choice to succeed Jerome Powell, whose chair term... https://www.scmp.com/business/china-business/article/3345721/trumps-fed-pick-stokes-uncertainty-investors-weigh-hawkish-past-pro-growth-pivot?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3345721/trumps-fed-pick-stokes-uncertainty-investors-weigh-hawkish-past-pro-growth-pivot?utm_source=rss_feed Sun, 08 Mar 2026 01:30:11 +0000 Peggy Ye Peggy Ye From Sydney to Hong Kong, wealth migration is reshaping the global super-luxury property market as activity picks up after two subdued years – though the dominance of relative newcomer Dubai is now being tested by the war in the Middle East. In Sydney, Peter Li, general manager at Plus Agency, said commission revenues on super-luxury homes had risen about 20 per cent from a year earlier. The firm, which handles more than US$300 million in annual sales, has hired six new staff members since... https://www.scmp.com/business/article/3345695/worlds-wealthy-relocate-rewriting-property-map-will-hong-kong-win-out?utm_source=rss_feed https://www.scmp.com/business/article/3345695/worlds-wealthy-relocate-rewriting-property-map-will-hong-kong-win-out?utm_source=rss_feed Sat, 07 Mar 2026 03:00:16 +0000 Aileen Chuang Aileen Chuang Major Hong Kong developer Sino Land posted a steady net profit for the six months ended December, propped up by early gains from a recovery in the city’s residential property market. Sino Land reported a net profit of HK$2.22 billion (US$284 million) in the first half of its current financial year – excluding revaluation losses on investment properties – that was slightly down from HK$2.24 billion a year earlier, according to its Hong Kong stock exchange filing on Friday. The company’s revenue... https://www.scmp.com/business/companies/article/3344915/hong-kong-developer-sino-land-posts-steady-profit-points-clear-market-improvements?utm_source=rss_feed https://www.scmp.com/business/companies/article/3344915/hong-kong-developer-sino-land-posts-steady-profit-points-clear-market-improvements?utm_source=rss_feed Fri, 27 Feb 2026 11:53:21 +0000 Enoch Yiu Enoch Yiu HSBC Holdings unveiled a range of new growth targets and strategies on Wednesday, including plans to boost investment in Hong Kong and other high-growth markets to US$1.8 billion in the coming years. CEO Georges Elhedery said the bank would raise its return target to 17 per cent or higher from 2026 to 2028, while maintaining a sustainable dividend policy. The forward-looking commitments helped lift HSBC’s share price despite a 7 per cent decline in annual profit. Among the expansion plans, the... https://www.scmp.com/business/banking-finance/article/3344541/hsbcs-2025-profit-falls-7-beats-estimates-despite-property-woes-madoff-lawsuits?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3344541/hsbcs-2025-profit-falls-7-beats-estimates-despite-property-woes-madoff-lawsuits?utm_source=rss_feed Wed, 25 Feb 2026 04:32:46 +0000 Cheryl Arcibal Cheryl Arcibal May Chan is looking for a home that she can call her own. The freelancer wants to buy a flat, but high mortgage rates as well as uncertainty in the property market kept her from taking the plunge. “I would like to buy a flat, if I can afford it,” she said. “It would certainly help if there are discounts.” Now that mortgage rates have stabilised and there is less uncertainty about property prices, she hopes to find a reasonably priced home. With Hong Kong’s residential property market stabilising... https://www.scmp.com/business/article/3344098/hong-kong-homebuyers-face-dwindling-discounts-property-market-stabilises?utm_source=rss_feed https://www.scmp.com/business/article/3344098/hong-kong-homebuyers-face-dwindling-discounts-property-market-stabilises?utm_source=rss_feed Mon, 23 Feb 2026 01:30:13 +0000 Agence France-Presse Agence France-Presse Consumer inflation in the US cooled slightly more than expected in January, government data showed Friday, as energy prices dipped. Analysts say the figure allows the Federal Reserve to cut interest rates again later this year, but warn that policymakers need to see sustained improvement to do so – despite US President Donald Trump’s insistence that there is virtually no inflation. The consumer price index (CPI) rose 2.4 per cent year-on-year, the Department of Labour said, down from December’s... https://www.scmp.com/news/world/united-states-canada/article/3343541/us-inflation-cools-more-expected-kindling-hopes-fed-rate-cut?utm_source=rss_feed https://www.scmp.com/news/world/united-states-canada/article/3343541/us-inflation-cools-more-expected-kindling-hopes-fed-rate-cut?utm_source=rss_feed Fri, 13 Feb 2026 16:57:55 +0000 CNA CNA The median monthly household income in Singapore rose to S$12,446 (US$9,250) last year, up from S$11,558 the year before, an increase of 6.8 per cent after adjusting for inflation. After accounting for household size, the median monthly household income per household member rose by 7.5 per cent in real terms, from S$3,837 in 2024 to S$4,160 in 2025. The figures were released on Monday in the Key Household Income Trends 2025 paper by the Singapore Department of Statistics (Singstat). In a video... https://www.scmp.com/news/asia/southeast-asia/article/3342918/singapore-wage-growth-outpaced-inflation-most-2025-wong-says?utm_source=rss_feed https://www.scmp.com/news/asia/southeast-asia/article/3342918/singapore-wage-growth-outpaced-inflation-most-2025-wong-says?utm_source=rss_feed Mon, 09 Feb 2026 09:06:41 +0000 Cheryl Arcibal Cheryl Arcibal Hong Kong’s so-called headquarters economy, in which the city serves as a regional and global base for corporate headquarters, is spurring recovery in the commercial real estate sector as analysts forecast an improved investment environment this year. The city’s battered office market showed signs of stability in 2025, with 2.1 million sq ft (195,000 square metres) of net absorption for the full year, the largest annual total since 2018, according to CBRE. Central recorded the biggest... https://www.scmp.com/business/article/3342815/what-hong-kongs-headquarters-economy-and-how-it-drives-commercial-property-upswing?utm_source=rss_feed https://www.scmp.com/business/article/3342815/what-hong-kongs-headquarters-economy-and-how-it-drives-commercial-property-upswing?utm_source=rss_feed Sun, 08 Feb 2026 07:44:27 +0000 Anthony Rowley Anthony Rowley When the world’s leading central banks rode to the rescue during the global financial crisis in 2008, they were hailed as knights in shining armour intent upon slaying the twin dragons of economic recession and deflation. Now it seems the knights are no more, to quote an old English hymn, and yet the dragons are not dead. US President Donald Trump’s nominee to head the Federal Reserve, Kevin Warsh, has expressed doubts over whether the Fed acted wisely when it became the biggest buyer of US... https://www.scmp.com/opinion/world-opinion/article/3342516/trump-takaichi-meddling-finance-spells-more-turbulence-ahead?utm_source=rss_feed https://www.scmp.com/opinion/world-opinion/article/3342516/trump-takaichi-meddling-finance-spells-more-turbulence-ahead?utm_source=rss_feed Sat, 07 Feb 2026 08:30:09 +0000 Julie Zhang Julie Zhang Sun Hung Kai Properties (SHKP), Hong Kong’s largest developer by market capitalisation, sold all 350 units released on Sunday in its Sierra Sea project, marking a fifth consecutive sell-out and underscoring returning buyer appetite in the world’s most expensive property market. The batch at phase 2B included 244 two-bedroom and 106 three-bedroom units, with discounted prices ranging from HK$4.6 million (US$590,000) to HK$9.74 million, according to sales documents released on Wednesday. The... https://www.scmp.com/business/companies/article/3341986/hong-kongs-shkp-rolls-out-350-sierra-sea-flats-after-sell-outs-worlds-priciest-market?utm_source=rss_feed https://www.scmp.com/business/companies/article/3341986/hong-kongs-shkp-rolls-out-350-sierra-sea-flats-after-sell-outs-worlds-priciest-market?utm_source=rss_feed Sun, 01 Feb 2026 09:00:12 +0000 Anthony Rowley Anthony Rowley Compared with the turmoil threatened by US President Donald Trump’s actions in everything from geopolitics to trade, the outcome of Japan’s parliamentary lower house election, set for February 8, may seem like small beer. Yet it could presage a great upheaval in global finance. The election outcome is widely expected to strengthen the political power base of the fiscally expansionist Japanese prime minister, Sanae Takaichi, and increase borrowing when government debt almost everywhere is already... https://www.scmp.com/opinion/asia-opinion/article/3341741/how-one-election-japan-could-upend-bond-markets-and-global-finance?utm_source=rss_feed https://www.scmp.com/opinion/asia-opinion/article/3341741/how-one-election-japan-could-upend-bond-markets-and-global-finance?utm_source=rss_feed Sat, 31 Jan 2026 08:30:07 +0000 Mark Magnier,Frank Tang Mark Magnier,Frank Tang US President Donald Trump on Friday named former Federal Reserve official Kevin Warsh to be the next head of the US central bank, after teasing his choice for weeks, with Jerome Powell due to step down from the top job in May. The 55-year-old Warsh, who served as a governor of the Federal Reserve Board from 2006 to 2011, appeared to align with Trump’s bid to control the monetary policymaking institution as economic issues – from tariffs to affordability – dominate the policy agenda ahead of the... https://www.scmp.com/news/us/politics/article/3341870/trump-picks-former-federal-reserve-official-kevin-warsh-chair-us-central-bank?utm_source=rss_feed https://www.scmp.com/news/us/politics/article/3341870/trump-picks-former-federal-reserve-official-kevin-warsh-chair-us-central-bank?utm_source=rss_feed Fri, 30 Jan 2026 12:22:59 +0000 Mia Nurmamat Mia Nurmamat Since returning to the White House a year ago, US President Donald Trump has stepped up pressure on the Federal Reserve. With the term of the current Federal Reserve chair, Jerome Powell, set to end in May, Trump said he would announce his pick to replace Powell on Friday. Speculation has intensified on prediction markets. On Polymarket and Kalshi, betting volumes on the question “Who will Trump nominate as Fed chair?” had respectively reached about US$294.24 million and US$81.61 million by... https://www.scmp.com/economy/global-economy/article/3341813/trumps-fed-pick-new-clear-favourite-emerges-chair-race-succeed-powell?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3341813/trumps-fed-pick-new-clear-favourite-emerges-chair-race-succeed-powell?utm_source=rss_feed Fri, 30 Jan 2026 08:30:19 +0000 Brian Rhoads,Raymond Ma Brian Rhoads,Raymond Ma Hong Kong’s financial war chest increased its earnings by 51 per cent to a record last year, fuelled by a rally in local and global stocks as well as bonds. The Exchange Fund’s investment income surged to HK$331 billion (US$42 billion), the most since its creation in 1993, the Hong Kong Monetary Authority (HKMA) said on Wednesday. Hong Kong’s de facto central bank uses the fund’s holdings to help defend the city’s currency peg to the US dollar. All of the fund’s main investment categories were... https://www.scmp.com/plus/business/banking-finance/article/3341679/hong-kong-regains-lustre-stocks-rally-property-picks?utm_source=rss_feed https://www.scmp.com/plus/business/banking-finance/article/3341679/hong-kong-regains-lustre-stocks-rally-property-picks?utm_source=rss_feed Thu, 29 Jan 2026 09:11:02 +0000 Enoch Yiu Enoch Yiu Hong Kong’s de facto central bank has warned the public to beware of interest rate uncertainties this year after leaving its base rate unchanged, following a similar move overnight by the US Federal Reserve, leaving borrowers in the city with a longer wait for funding costs to fall. The Hong Kong Monetary Authority (HKMA) announced its decision to keep the city’s base rate at 4 per cent on Thursday morning. Hours earlier, the Fed also kept its target rate in the range of 3.5 per cent to 3.75 per... https://www.scmp.com/business/banking-finance/article/3341602/hkma-follows-federal-reserve-keep-interest-rate-unchanged?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3341602/hkma-follows-federal-reserve-keep-interest-rate-unchanged?utm_source=rss_feed Wed, 28 Jan 2026 23:07:07 +0000 Agence France-Presse Agence France-Presse The US Federal Reserve held interest rates steady on Wednesday at its first policy gathering this year, citing robust economic growth, as the central bank resists President US Donald Trump’s mounting pressure for cuts. The Fed’s 10-2 vote maintains rates at a range between 3.50 per cent and 3.75 per cent, an outcome that was widely expected as officials await more data on the world’s biggest economy. In a statement on its decision, policymakers flagged that economic activity has been “expanding... https://www.scmp.com/news/world/united-states-canada/article/3341596/us-federal-reserve-holds-interest-rates-steady-defying-trump-pressure?utm_source=rss_feed https://www.scmp.com/news/world/united-states-canada/article/3341596/us-federal-reserve-holds-interest-rates-steady-defying-trump-pressure?utm_source=rss_feed Wed, 28 Jan 2026 19:23:17 +0000 Cheryl Arcibal Cheryl Arcibal Hong Kong’s lived-in home prices ended a three-year downturn with a 3.25 per cent increase in 2025, as the property market gallops into the new year buoyed by expectations of more transactions and further price gains, according to analysts. Rents climbed to a record high in December, boosting annual gains to 4.26 per cent in 2025 and marking a third consecutive year of increase, according to the Rating and Valuation Department on Wednesday. “Hong Kong’s residential market strengthened notably... https://www.scmp.com/business/article/3341501/hong-kong-home-prices-snap-3-year-downturn-rents-surge-new-high?utm_source=rss_feed https://www.scmp.com/business/article/3341501/hong-kong-home-prices-snap-3-year-downturn-rents-surge-new-high?utm_source=rss_feed Wed, 28 Jan 2026 05:17:37 +0000 Aileen Chuang Aileen Chuang The sudden appreciation of the Japanese yen has intensified risk-off sentiment among investors, as concerns over elevated bond yields, policy uncertainty and credit risks in the world’s fifth-largest economy weigh on market confidence, according to analysts. The yen rose to a two-month high on Monday, hitting 153.61 per US dollar as of 5.30pm as speculation surged that US and Japanese authorities could intervene to prop up the currency. It was last at a similar level on November 6, when it... https://www.scmp.com/business/markets/article/3341275/spiking-yen-fuels-risk-averse-mood-investors-take-defensive-stance?utm_source=rss_feed https://www.scmp.com/business/markets/article/3341275/spiking-yen-fuels-risk-averse-mood-investors-take-defensive-stance?utm_source=rss_feed Mon, 26 Jan 2026 11:00:12 +0000 Enoch Yiu Enoch Yiu Hong Kong banks may not cut their prime rates this year, but local interbank rates will still follow US rates lower, benefiting a majority of borrowers, according to a senior executive of the Hong Kong Monetary Authority (HKMA). Analysts widely expect the US Federal Reserve to cut its key rate by three-quarters of a point this year, but Hong Kong commercial banks are unlikely to cut their prime lending rates more than they already have. “It would be hard for banks to cut their prime rate any... https://www.scmp.com/business/banking-finance/article/3341150/how-lower-us-interest-rates-will-help-hongkongers-even-if-local-prime-rates-dont-drop?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3341150/how-lower-us-interest-rates-will-help-hongkongers-even-if-local-prime-rates-dont-drop?utm_source=rss_feed Mon, 26 Jan 2026 03:30:14 +0000 Peggy Ye Peggy Ye Hong Kong’s housing market may be on the verge of a sharp rebound and a new upcycle after four years of decline, according to Praveen Choudhary, head of Asia gaming, Hong Kong and India property research at Morgan Stanley. Choudhary expects home prices to rise about 10 per cent in 2026 – among the most bullish forecasts for a market that has fallen roughly 30 per cent from a peak in 2021. For him, the call is less about a single year’s gain and more about a shift in the cycle after years of... https://www.scmp.com/business/article/3340953/all-signs-point-rebound-hong-kongs-housing-market-morgan-stanley-analyst?utm_source=rss_feed https://www.scmp.com/business/article/3340953/all-signs-point-rebound-hong-kongs-housing-market-morgan-stanley-analyst?utm_source=rss_feed Sun, 25 Jan 2026 02:00:15 +0000 Aileen Chuang Aileen Chuang A sudden spike in volatility in Japanese government bonds (JGBs) – long seen as among the world’s safest assets – is stoking concern that risk aversion is rippling through Asian markets across asset classes, according to analysts. Investors have repriced the term and risk premiums on JGBs as fiscal worries that started simmering last year have flared again after Prime Minister Sanae Takaichi pledged tax cuts and higher spending. The 40-year bond yield rose above 4 per cent on Tuesday, the... https://www.scmp.com/business/commodities/article/3340667/japan-bond-volatility-raises-contagion-alarm-asias-stocks-and-debt?utm_source=rss_feed https://www.scmp.com/business/commodities/article/3340667/japan-bond-volatility-raises-contagion-alarm-asias-stocks-and-debt?utm_source=rss_feed Wed, 21 Jan 2026 07:11:50 +0000 Peggy Ye Peggy Ye Major financial institutions, including Citi and Bank of America, are increasingly optimistic about Hong Kong’s residential property market this year, as lower mortgage rates and strong leasing demand change buying behaviour. Citi raised its home price forecast to 8 per cent this year, up from 3 per cent in October, citing a faster-than-expected rebound last year. “[There will be] further acceleration in 2027 under a multi-year upcycle,” said Griffin Chan, an analyst at Citi Research, on Friday.... https://www.scmp.com/business/article/3339616/hong-kong-property-citi-lifts-forecast-after-morgan-stanleys-upgrade?utm_source=rss_feed https://www.scmp.com/business/article/3339616/hong-kong-property-citi-lifts-forecast-after-morgan-stanleys-upgrade?utm_source=rss_feed Mon, 12 Jan 2026 10:47:59 +0000 Reuters Reuters The Trump administration has threatened to indict Federal Reserve Chair Jerome Powell over Congressional testimony he gave last summer about a Fed building project, ‌an action Powell called a “pretext” to gain more influence over the central bank and monetary policy. The development in the long-simmering effort by President Donald Trump for greater control over the Fed had immediate fallout, ‍with Republican Senator Thom Tillis, a member of the Senate Banking Committee that vets Presidential... https://www.scmp.com/news/world/united-states-canada/article/3339525/trump-powell-conflict-escalates-threat-criminal-indictment?utm_source=rss_feed https://www.scmp.com/news/world/united-states-canada/article/3339525/trump-powell-conflict-escalates-threat-criminal-indictment?utm_source=rss_feed Mon, 12 Jan 2026 01:50:21 +0000 Cao Li Cao Li Hong Kong’s largest developer, Sun Hung Kai Properties (SHKP), posted another sell-out this weekend for the latest batch of units on sale at its massive Sierra Sea residential project, as improving market sentiment continued to boost homebuyers’ confidence. Homebuyers snapped up all 213 flats on sale at Sierra Sea’s Phase 2A as of 9pm on Saturday, according to agents. Information on 49 other flats offered via tender were not disclosed. “About 60 per cent of buyers are for investment,” said Louis... https://www.scmp.com/business/companies/article/3339431/hong-kongs-shkp-set-continue-sell-out-streak-latest-sierra-sea-offering-agents?utm_source=rss_feed https://www.scmp.com/business/companies/article/3339431/hong-kongs-shkp-set-continue-sell-out-streak-latest-sierra-sea-offering-agents?utm_source=rss_feed Sat, 10 Jan 2026 06:43:57 +0000 Peggy Ye Peggy Ye Hong Kong’s leading property developers are accelerating new residential launches, with two major firms unveiling plans to roll out more than 4,500 flats this year as sentiment shows signs of improvement, but analysts caution that a surge in supply may add fresh pressure to a market that has only begun to stabilise. Developers, including Wheelock Properties and Kerry Properties, are pressing ahead with large-scale launches, adding new supply on top of still-elevated inventory from previous... https://www.scmp.com/business/banking-finance/article/3339073/hong-kong-developers-rush-new-flats-sentiment-lifts-pressuring-fragile-recovery?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3339073/hong-kong-developers-rush-new-flats-sentiment-lifts-pressuring-fragile-recovery?utm_source=rss_feed Wed, 07 Jan 2026 11:30:23 +0000 Carol Yang Carol Yang As China grapples with persistent deflationary pressure, scholars from one of the country’s top universities have urged the government to take more forceful action to prevent the economy from becoming trapped in a Japan-style downward spiral. Beijing should adopt a binding inflation target and make reviving price growth a top priority, they argued, pointing to Japan’s “lost decades” as a cautionary tale of how deflation can become deeply entrenched if left unchecked. “Japan’s experience has... https://www.scmp.com/economy/china-economy/article/3338472/china-must-take-action-avoid-japan-style-deflation-spiral-scholars-warn?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3338472/china-must-take-action-avoid-japan-style-deflation-spiral-scholars-warn?utm_source=rss_feed Fri, 02 Jan 2026 07:00:11 +0000 Enoch Yiu Enoch Yiu The US Federal Reserve under a new chairman in 2026 is expected to press ahead with interest rate cuts of up to 75 basis points, a move that would lower Hong Kong’s interbank-linked loan costs but leave prime lending rates stuck at their historical low, according to analysts. The Fed and the Hong Kong Monetary Authority (HKMA) both reduced their key policy rates by a total of 75 basis points in 2025, following a full percentage-point rate cut in 2024. Hong Kong’s base rate now stands at 4 per... https://www.scmp.com/business/banking-finance/article/3337042/hong-kong-interbank-rates-forecast-drop-expected-us-monetary-easing-2026?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3337042/hong-kong-interbank-rates-forecast-drop-expected-us-monetary-easing-2026?utm_source=rss_feed Thu, 01 Jan 2026 23:00:09 +0000 Edward Ding Edward Ding US President Donald Trump’s tariffs will undoubtedly play a significant role in how we will remember 2025. While economists predicted a growing possibility of a recession back in April, the US economy displayed unexpected resilience, with third-quarter growth reaching a stunning 4.3 per cent, bolstered by robust consumer spending and strong capital expenditure related to artificial intelligence. The impact of tariffs on inflation persists, although it appears less severe than economists feared.... https://www.scmp.com/opinion/world-opinion/article/3338152/why-donald-trump-will-focus-fed-2026?utm_source=rss_feed https://www.scmp.com/opinion/world-opinion/article/3338152/why-donald-trump-will-focus-fed-2026?utm_source=rss_feed Wed, 31 Dec 2025 12:30:09 +0000 Zhu Wenqian Zhu Wenqian China will lower value-added tax (VAT) on individual home resales from January 1, but while the measure has drawn interest from consumers, property agents have said most remain cautious and are adopting a wait-and-see approach. The policy would work to a certain extent, but its ability to revive the housing market was likely to be limited, they added. Individuals selling residential properties within two years of purchase would now be subject to a VAT rate of 3 per cent, down from 5 per cent,... https://www.scmp.com/business/banking-finance/article/3338284/china-housing-market-gets-vat-relief-resales-demand-outlook-stays-subdued?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3338284/china-housing-market-gets-vat-relief-resales-demand-outlook-stays-subdued?utm_source=rss_feed Wed, 31 Dec 2025 09:30:12 +0000 Peggy Ye Peggy Ye Sun Hung Kai Properties (SHKP), Hong Kong’s largest developer, has priced the next batch of units on offer at its massive Sierra Sea residential project about 5 per cent higher than previous phases, signalling a welcome improvement in the city’s housing market. The 148 units in Phase 2A of the development in Sai Sha Wan, Sai Kung, were priced from HK$3.43 million (US$440,961), with an average discounted price of HK$10,968 per square foot, according to sales documents released on Tuesday. The... https://www.scmp.com/property/article/3338162/hong-kong-developer-shkp-nudges-prices-latest-sierra-sea-flats-offer?utm_source=rss_feed https://www.scmp.com/property/article/3338162/hong-kong-developer-shkp-nudges-prices-latest-sierra-sea-flats-offer?utm_source=rss_feed Tue, 30 Dec 2025 09:45:07 +0000 Peggy Ye Peggy Ye Hong Kong’s primary residential home sales in 2026 are forecast to again reach decade-high numbers, as developers continue to clear inventory and homebuyers focus more on small, low-cost flats. Transactions next year were projected to reach about 21,000, while total home sales were expected to climb to around 71,000, up 8 per cent from this year’s forecast, according to Midland Realty. A total of 26,479 new flats were expected to be rolled out next year, spread across Kai Tak, the North... https://www.scmp.com/business/banking-finance/article/3337924/hong-kong-primary-home-sales-poised-decade-high-2026-small-flats-energise-market?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3337924/hong-kong-primary-home-sales-poised-decade-high-2026-small-flats-energise-market?utm_source=rss_feed Sun, 28 Dec 2025 23:00:13 +0000