Surging interbank rates. A shock jump in the currency. Hong Kong’s decade-long liquidity party suddenly appears to be ending, and that can only be bad news for its expensive property market.
The one-month rate known as Hibor rose 28 basis points on Monday, the most since December 2008. That followed the biggest jump in the Hong Kong dollar in 15 years at the end of last week. The chance of local banks raising the so-called prime rate, which caps the cost of some mortgages, is “extremely high,” Financial Secretary Paul Chan said. That hasn’t happened since 2006.
