| The International Monetary Fund has given Hong Kong bank shareholders a fright today by issuing a warning that the Chinese territory faces a real estate slowdown that poses risks for banks. After a long run-up in real estate values, a correction is upon us, the IMF stated in its report dated Nov. 17 but published today.
The IMF said the property sector represents half of outstanding loans for use in Hong Kong while real estate is often also used as loan collateral. A sharp property price correction would lead to an "adverse feedback loop between economic activity, bank lending, and the property market," the IMF explained...............................................Full Article: Source
|