HK interest rates cut

[shri]

HSBC - Deposit Rates from 0.125% to 0.001%.... why bother.

[traineeinvestor]

Possibly a sign that the banks are having trouble making new loans at the moment?

It's an insignificantly small sample size, but several people I have been speaking to recently have been reducing risk (primarily either through paying down debt or buying bonds/capital guaranteed structured products instead of equities/property).

[DimSumBond]

Any bank with large exposures to Hong Kong and China needs to be looked at closely.

I am concerned about the assets quality of the international banks and how the downturn will impact their parent companies. Any bank that posts strong results now is clearly taking on too much risk on their books.

Being flush with cheap deposits does not equal a stable and secure banking sector.

[freeier]

Any bank with large exposures to Hong Kong and China needs to be looked at closely.

I am concerned about the assets quality of the international banks and how the downturn will impact their parent companies. Any bank that posts strong results now is clearly taking on too much risk on their books.

Being flush with cheap deposits does not equal a stable and secure banking sector.

but i think the earlier days of only giving max 50 or 60% loan for houses >6m HKD probably works well in protecting the banks.. as to the 2nd mortgage taken off some developers, think those are developers' own risk so even less concerns.

[bdw]

Yay! HK finally reducing mortgage interest rates like the rest of the world. Prime rates at HSBC and Standard Chartered down 0.125%. My effective interest rate cut from 2.375% to 2.25%.

https://www.reuters.com/article/hong...-idUSL3N27F6WP

[ChuckFan]

Yay! HK finally reducing mortgage interest rates like the rest of the world. Prime rates at HSBC and Standard Chartered down 0.125%. My effective interest rate cut from 2.375% to 2.25%.
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Hmm, that makes mortages quite competitive with the Tax Season Loan rates....

[traineeinvestor]

Original Post Deleted

Thanks for the link. I didn't know banks in HK had quotas for mortgage lending.

Is the banks' lending quota something imposed by the HKMA or by the banks themselves? If the latter then presumably it's just a notional target unless the banks are struggling to get deposits and/or are running up against capital adequacy thresholds - both of which are unlikely given the banks have just cut deposit rates.

[Paxbritannia]

Managed to still place a time deposit with DBS at an effective rate of 3.85% p.a. today. Yay!

[thad]

Managed to still place a time deposit with DBS at an effective rate of 3.85% p.a. today. Yay!

How did you manage that?? Period??

[Paxbritannia]

How did you manage that?? Period??

3 months. The base rate for online placement was 2.1%, then add 0.15% bonus for placing it online, plus fixed cash bonuses for using iBanking and for transferring funds in via FPS (which apply irrespective of tenor), so the shorter the tenor the bigger % boost you're getting from those fixed bonuses, in effect.

Re HSBC and the 'new funds' offer that pops up online as soon as you transfer money in, 2 questions:

1) do HSBC business accounts get the same offers like this as for a personal account?
2) anyone know if Citi online banking functions in the same way?