Property And Financial Markets Remain Resilient: FS

Financial Secretary Paul Chan on Thursday said Hong Kong's property and financial markets remain resilient despite repeated interest rate hikes in the United States.

Chan told reporters that interest rates in the SAR will inevitably increase, but the hikes need not be in lock-step with those in the US.

He said the rate and magnitude of the increases here will depend on the liquidity of local banks.

On the property market, the finance chief said homeowners' staying power is sound, although mortgage payments are expected to rise.

"Going forward, with all the safeguard measures and the strong underlying demand for home ownership, the basics of our property market remain resilient although the sentiment would be dampened because of the increased mortgage payment and the expectation of the rate to go up further," he said.

Chan said the government will revise its economic growth forecast for 2022, as the city's export performance is being hit by the worsening global economic situation.

But he expressed optimism regarding local consumption levels for the rest of the year, due to the distribution of another round of spending vouchers.

"Our assessment is that the economic performance of Hong Kong in the second half would be better than the first half, but taking the year as a whole, unavoidably we may need to revise our GDP growth forecast," he said.

Meanwhile, Chan dismissed concerns that financial difficulties encountered by some mainland developers could affect the stability of banks in Hong Kong.

"We've been monitoring the situation very carefully and we do not find cause for alarm. For the mainland developers that borrow from our banks, they have to provide collateral. The banks have been adopting a very prudent lending policy with regard to all these mainland developers," he said.