Hong Kong Banks Slash Property Valuations as Home Market Teeters
- CLSA says move will add pressure to already weakening market
- City’s chief executive to unveil housing measures Wednesday
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Banks in Hong Kong are aggressively cutting property valuations as the city’s housing market weakens, threatening to fuel a downward spiral in prices, according to brokerage CLSA Ltd.
“The banks’ assessment is often a self-fulfilling prophecy, as lower valuations will mean less lending,” analysts led by Nicole Wong wrote in a note Tuesday.