Hong Kong Property Is Shielded From Rate Spikes, HSBC Says
- There’s still a large buffer in interbank liquidity: Leung
- Ample liquidity has spurred rallies in H.K. stocks, property
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Don’t expect interest rates to spike anytime soon in Hong Kong, where abundant liquidity has fueled spectacular rallies in the stock and property markets.
That’s according to Hong Kong’s biggest lender HSBC Holdings Plc, which says a key measure -- the aggregate balance maintained by commercial banks -- would need to plunge by $10 billion for local rates to show any substantial gains. An outflow of that magnitude isn’t likely to happen quickly barring a big market shock, said George Leung, an HSBC adviser for Asia-Pacific who’s among the bank’s senior management.