Hong Kong banks may increase the interest rates they charge on mortgages as the city’s new risk rule pushes up funding costs, said Benjamin Hung, chief executive officer for the city at Standard Chartered Plc.
Yuan loans in Hong Kong may triple this year as the currency becomes more globally accepted in trade and finance, according to Bank of Communications Ltd., China’s fifth-largest lender by market value.
South Korea’s won rose to a two-week high after German and French leaders pledged to stem a European debt crisis that’s bolstered the dollar and curbed demand for higher-yielding assets. Government bonds advanced.
American and European financial companies with units in Hong Kong can use yuan raised offshore to invest in China’s capital markets as part of a recently expanded program, according to the central bank.