The property price ratio was 16 times
Hong Kong residential property prices continued to record high, the Hong Kong Monetary Authority President Chen Delin said the public housing affordability and property prices out of the situation increasingly serious, “can be used to describe the risk of bubbles.”
Gold tube Chen De Lin (left) said that property should pay attention to interest rates and property risk. (Chen Dexian photo)
Gold tube warning bubble risk
In the face of frequent housing prices, the HKMA launched the eighth round of counter-cyclical measures to be adjusted this month. Mr Chan said the property market continued to rise, but the ratio of property prices to household income was nearly 16 times higher than that of 1997, which was 14 times higher than that of the 1997 Asian financial crisis. This means that the housing affordability and property prices are getting worse. , Speak “the risk of bubbles can be described.”
He also said that home ownership is highly leveraged and large financial transactions, and the property market cycle by different factors, with the normalization of US interest rates, home buyers should pay attention to interest rates and property risk. As a result, a number of banks have increased their interest rates to the Hong Kong Interbank Offered Rate (H) plus a 1.4% level, which he considers to be a commercial decision by banks. The banks will measure capital requirements in response to tightening measures.
Hong Kong dollar recently weakened, asked the impact of the US interest rate hike on the flow of funds in Hong Kong, Chen Delin refers to the linked exchange rate system, the United States after the interest rate hike below the interest rate, the market demand for Hong Kong dollar weakened. With the widening of interest rates and interest rates, the funds will flow to the dollar, so that the overall bank balance is reduced, Hong Kong Silver will increase the interest on loans is inevitable.
Moody’s lowered the Hong Kong rating earlier, and he did not agree with the adjustment of the rating, because Moody’s will be linked to Hong Kong rating adjustment, a “mechanical” down, but the Mainland economic outlook improved, Hong Kong’s credit quality is good, Slightly lower impact on the cost of government bonds, there is confidence if the Hong Kong economy improved, Moody’s or raise Hong Kong rating.
Property relative to household income ratio
Standard & Poor’s regularly reviewed rating
S & P Global Asia Pacific sovereign rating senior director Chen Jinrong said, S & P will be based on the original arrangements for the Chinese rating on a regular basis, at this stage did not hold the temporary committee meeting reasons. For China, the agency will only follow the regular review of the rating model, did not disclose the next regular review when to proceed.
He also pointed out that all major rating agencies are currently higher in China, which means that the market generally does not expect China to have any form of financial turmoil in the near future.