Hong Kong’s property market is still in danger of overheating and a rise in interest rates would “indisputably” affect the city, Norman Chan, chief executive of the Hong Kong Monetary Authority said today.
Hong Kong’s banking regulator bought 50 percent of a project in London’s luxury-shopping district from Great Portland Estates Plc, adding to a wave of Asian investment in the city. The completed development could be valued at as much as 475 million pounds ($764 million).
The Hong Kong Monetary Authority has proposed that Chinese authorities remove a 20,000 yuan ($3,280) daily currency-conversion limit on the city’s permanent residents, according to Chief Executive Norman Chan.
The Hong Kong Monetary Authority may introduce measures to discourage banks from using short-term funding for long-term loans as the regulator seeks to ensure faster lending growth doesn’t destabilize the economy.
Yuan settlement of trade between Hong Kong and China more than doubled to 7.2 billion yuan ($1.05 billion) in May, compared with as much as 3 billion yuan in both March and April, the Hong Kong Monetary Authority said.