31/7/2017-9

Mortgage interest rate concessions beneficial owners

In June, it was reported that Hong Kong’s largest banks were “advised” by the Hong Kong Monetary Authority to raise the mortgage rate slightly. In mid-July, large banks because of small and medium-sized banks to low-risk challenges, the loss of market share, resulting in a small rate cut. The reason why large banks compete in the mortgage market, because the business is difficult to do, forced to continue to compete is not too bad mortgage market.

The overall loan growth of the Hong Kong banking system grew by nearly 20% at the annual rate in the first five months of this year, up from 6.5% of the year. However, if careful analysis, the bank business is not as good as imagined, such as non-primary property market this year, a large income field, the mortgage boom, bank performance is difficult to have a bright performance, how could the first quarter of nearly 20% increase?

In the first half of this year, the property market was big, with sales of about RMB13.56 billion. The figure was recorded at a record high in the first half of the year. Because property prices continue to hit a new high, buying and selling, to stimulate the bank mortgage business is booming.

The new bank had to grab the mortgage

If the primary property market sales is not a big income field, the bank did not push the first-hand mortgage, the loan performance is difficult to nearly 20% of the excellent growth. However, large banks in June to raise interest rates in the mortgage business, immediately attacked by small and medium banks, large banks in July again moderate interest rate cuts, is a “test water temperature” action, indicating that they can at any time for a larger counterattack to Seeking to protect their market share.

Another point of view, large banks in the mortgage cut interest rates, but also reflects the entire loan market is not as good as imagined, otherwise do not pay interest rates should earn more.

The overall lending market of the banking sector in Hong Kong will be more difficult to operate if there is no outstanding mortgage loan business to support the overall situation. Large banks are now forced to move, reflecting the overall loan business competition, I believe the banking industry will not casually improve the interest rate, the owners are expected to continue to enjoy low interest rates.