Credit ratings agency S&P Global expects Hong Kong bank credit losses to rise in a controllable range. The demand for and quality of bank credit and loans are affected by the social unrest, Sino-US tensions, and the sharp slowdown in China's economy. However, the agency believes Hong Kong banks' credit losses will rise in a controllable range and fall in the next year as the prudence regulation on the bank and relative conservative lending behavior are able to control credit losses. S&P Global also estimates that the Hong Kong economy may shrink by 3.9 percent this year and rebound to grow by 4.8 percent in the next year. However, the Hong Kong housing supply is in a structural shortage.

Source: The Standard May 08, 2020 09:22 UTC