Reported about 21 hours ago
Distressed property sales in Hong Kong are significantly affecting local banks as the commercial real estate market faces a severe slump, with average property prices dropping over 40% since 2018. While most banks are well-capitalized, the increasing defaults and pressure from deteriorating collateral values on commercial loans may lead to greater losses in the future. Analysts suggest that while current losses are manageable, ongoing declines in property values could pose additional challenges for financial institutions.
Source: YAHOO