HSBC Flags 73% of Hong Kong Commercial Property Loans as Risky Amid Market Downturn

HSBC has recently highlighted a growing concern in its Hong Kong commercial property loan portfolio. A significant 73% of these loans, amounting to $32 billion, have been marked as carrying increased credit risk or being impaired. This leap from less than 30% just a year ago underscores the prolonged downturn in Hong Kong’s property market. With prime office rents dropping over 20% since 2022 and vacancy rates hitting a record 19%, HSBC faces a challenging scenario in one of its key sectors.