HSBC, StanChart Raise HK Prime Rates as Borrowing Costs Rise
- Lenders raise rates after HK Monetary Authority hike
- Higher borrowing costs come as economy caps tough year
Higher rates have also helped drive Hong Kong’s property market into a rare downturn, with prices of residential properties and rent for office space slumping.
Photographer: Lam Yik/BloombergHSBC Holdings Plc and Standard Chartered Plc are raising their main lending rates in Hong Kong for the third time this year, a move that signals higher borrowing costs for property owners amid a real estate and economic downturn.
HSBC, the city’s biggest lender, is boosting its prime rate by 25 basis points to 5.625%. The move came hours after the Hong Kong Monetary Authority increased its base rate by 50 basis points on Thursday, the seventh tightening this year, as it follows the US Federal Reserve. Rival Standard Chartered is also raising its best lending rate by 25 basis points to 5.875%.