The amount fell by more than a fifth from the same period a year ago to US$21.3 billion, the lowest figure since the second quarter of 2010, according to a report by property consultancy JLL.

It has been nearly four months since the US Federal Reserve’s last interest rate hike – the 11th since early 2022 – but the impact still lingers in China’s markets, and an outflow of capital has persisted while the yuan depreciates.

The latest decision comes as a much-needed relief for Hong Kong’s businesses and mortgage borrowers. Hong Kong stocks jump in reaction, with most lenders logging big gains.

International Finance Forum say a trend of using regional currencies rather than US dollar is a result of unprecedented US monetary tightening, but there still remains doubts about a credible alternative.

However, prices are not likely to see a sharp upswing because of high interest rates, according to luxury property agency’s founder Victoria Allan.

An imminent decline in global interest rates should boost housing markets, but any improvement in Hong Kong could be delayed until there is a broader recovery in the local and wider Chinese economies, Knight Frank’s Liam Bailey says.

At a summit in Shanghai, an academic has echoed some of his peers by recommending the dumping of US Treasuries – a move that they say would help ensure the safety of China’s overseas assets.

Paul Chan and Bank of England governor discuss interest rates, inflation trends, global economic outlook and areas such as financial regulation in London.

The world’s second-largest economy offloaded US$13.6 billion worth of US debt in July, but China remains the second-largest foreign holder of US Treasury bills, having been surpassed by Japan in mid-2019

The Fed has raised interest rates 11 times over the last 18 months as it tackles inflation still stubbornly above its long-term target of 2 per cent.