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Interest rates

Interest rates
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 may differ in terms of timing and margin of change.
A view of One Park Place in Yau Tong. Photo: Google maps
Hong Kong property

Yau Tong project nearly sells out amid hopes of home market recovery in 2026

The flats at One Park Place were in high demand after developers Sino Land, CSI Properties and MTR offered discounts of up to 15 per cent.

Cryptocurrency

Bitcoin drops below US$90,000 as AI worries sour risk appetite

Banking & finance

Six major Hong Kong banks keep prime rates unchanged despite HKMA base rate cut

United States

US Fed delivers quarter-point rate cut as policymakers weigh inflation outlook

Move falls short of Trump’s demands as debate over Fed independence intensifies and markets brace for global spillover effects.

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US Federal Reserve Chair Jerome Powell is set to step down in May. Photo: Reuters
Hong Kong property

Hong Kong home prices to rise in 2026 due to mainland Chinese buyers, rate cut

‘Housing prices have bottomed out, and the outlook for 2026 is cautiously optimistic,’ JLL Hong Kong chairman Joseph Tsang says.

China trade

‘Strong breakwaters’: China’s central bank vows to shield from external shocks

Governor Pan Gongsheng says policy must prioritise the domestic economy, warning against ‘excessive policy swings’ that could undermine long-term stability.

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Commodities

Silver surge outpaces gold on global squeeze, rising interest rate-cut hopes

White metal doubles in value this year to reach record high, outshining gold’s 60 per cent rise.

Silver, like gold, has been boosted by increased expectations that the US Federal Reserve will cut interest rates this month. Photo: May Tse
Hong Kong property

Hong Kong developers Emperor and Lai Sun find relief amid debt pressures

Emperor secures bank approval while Lai Sun negotiates asset sales as they work to ease debt pressures.

Bonds

Hong Kong dollar bonds to continue surge after record US$42 billion year

City’s deep, liquid market and low inflation attract issuers amid a structural shift away from the US dollar, analysts say.

Mainland China

Gold fever in China

Prices for the precious metal have hit record highs spurred by Chinese retail investors and central bank purchases.

Gold fever in China
Hong Kong property

‘No acne’ salon boss snaps up US$19.58 million Ho Man Tin luxury duplex

The director behind Hong Kong’s “no acne” salon has bought into the Ultima development, putting a fresh face on the city’s luxury market.

The Ultima complex on Fat Kwong Street in Ho Man Tin. Photo: Handout
Hong Kong property

Momentum builds: ‘bigger’ Hong Kong property rebound forecast for 2026

Resurgent stock market helps steer secondary home prices to 14-month high as rent index maintains historical peak.

Yuan

China sets strongest yuan fix in over a year as Fed-cut bets rise

China’s currency is outperforming the euro and yen despite economic headwinds, with analysts pointing to Beijing’s geopolitical leverage as the driver.

Hong Kong property

‘Out of ICU’: Hong Kong’s quarterly real estate deals triple to US$4.9 billion

Hong Kong was the second-best performing commercial real estate market in Asia-Pacific after Malaysia in the three months to September: MSCI.

The third-quarter investment in Hong Kong’s commercial real estate was the highest for any quarter since 2019. Photo: May Tse
United States

Trump eyes Christmas deadline to name new Fed chair: Bessent

The US treasury secretary says simplifying the Fed is key, as he conducts interviews with the five candidates to succeed Chair Jerome Powell.

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US Treasury Secretary Scott Bessent speaks to the media, following trade talks between the US and China, in Kuala Lumpur, Malaysia on October 26. Photo: Reuters
Hong Kong property

Hong Kong sees lacklustre weekend property sales at Tuen Mun development

The Reserve at Gold Coast Bay sells only 14 flats of the 152 units on offer as of 6.30pm.

Banking & finance

As China’s central bank projects confidence, are rate cuts on the back burner?

The People’s Bank of China said the economy was on track to hit its annual growth target despite facing a challenging environment.

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Currencies

Dollar carry trade defies ‘Sell America’ woes, trounces world’s stocks

A Bloomberg gauge of the US dollar bounced back around 3 per cent from a September low, in part because of the so-called carry trade.

A photo collage of global currencies with the US dollar in the centre. Photo: Agence-France Presse
Hong Kong property

Hong Kong property deals rise to 3-month high as buyers benefit from rate cut

October marks the third straight month of gains in the sector, strengthening the outlook for a sustained market recovery.

Bonds

Hong Kong dollar bond sales slump amid elevated interest rates

Bond sales in the local currency fell about 30 per cent month on month to HK$357.7 billion (US$46 billion) in October.

Hong Kong economy

Hong Kong finance chief Paul Chan says economy ‘doing OK’ as GDP rises by 3.8%

Financial Secretary Paul Chan welcomes move to cut interest rate to 4.25 per cent, saying it will ease pressure on residents and businesses.

The Hong Kong Monetary Authority cut the base rate to 4.25 per cent on Thursday morning, hours after the Federal Reserve pared its target rate by the same margin to a range of 3.75 to 4 per cent. Photo: Jelly Tse
Standard Chartered Bank

Standard Chartered’s profit rises on trade loans, wealth management

Net profit rose to US$1.03 billion, or 44.5 US cents per share, in the quarter that ended in September, the London-based bank said in a filing.

People pass by the logo of Standard Chartered at a banking and financial conference in Toronto, Canada. File photo: Reuters
Banking & finance

HSBC, other Hong Kong banks cut prime rate to as low as 5%

Half-point reduction over the last six weeks will be positive for the property market and the economy in general, HKMA boss says.

United States

US Fed lowers key rate, but Powell says December cut not guaranteed

The central bank’s second consecutive quarter-point cut seeks to bolster the flagging US labour market.

Hong Kong property

Hong Kong home prices post year’s biggest gain as rents climb to near peak

Boosted by a resurgent stock market and favourable interest rates, lived-in home prices rise to their highest in more than a year.

Lived-in home prices have so far climbed 1.14 per cent this year. Photo: Eugene Lee
Hong Kong property

Hong Kong property: Grand Mayfair III, Woodis see brisk sales as market picks up

Buyers acquired 71 of 138 units by late Sunday afternoon at the 680-unit Grand Mayfair III project led by Sino Land.

Buyers thronged to the Grand Mayfair III project during the first round of sales on Tuesday. Photo: Handout
Hong Kong property

Sino Land chairman Daryl Ng sees positive signs for Hong Kong’s property market

It is heartening to see strong sales performance for new developments across various districts, Daryl Ng says.

Banking & finance

Hong Kong dollar peg here to stay despite global shifts: currency architect

The US dollar will still be the dominant currency for several more decades, economist behind Hong Kong’s currency board system says.

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