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Hong Kong Bank System Outlook Cut by Moody’s on China Risk

The outlook for Hong Kong’s banking system was lowered to negative from stable at Moody’s Investors Service Inc. on lenders’ growing exposure to borrowers in China.

Hong Kong banks are increasingly reliant on the mainland because real interest rates in the city remain low amid surging property prices, the credit-rating company said in a statement yesterday. These circumstances “may contribute to adverse future operating conditions for Hong Kong banks,” it said.