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Hong Kong Faces Housing Risks as Fed Tightening Looms, IMF Says

Markets And Island East Area As Hong Kong CPI Figures Are Released
Photographer: Xaume Olleros/Bloomberg

Stretched property valuations mean Hong Kong’s economy is vulnerable if interest rates rise faster than expected, the International Monetary Fund said.

In its annual assessment of the Asian financial hub, the IMF identified three main risks -- rising interest rates and potential global market volatility, China-linked stress, and a possible downturn in the property market.