HK's commercial lenders on edge as building values tumble

Posted by Ed 9 mths ago
HONG KONG (Reuters) - Commercial lenders in Hong Kong say they are concerned about a 30% drop in building values over the past 12 months and will consider calling in or restructuring loans if values fall much further.
If lenders demand repayment of loans or try to tighten terms, it could set off a wave of property sales that might depress prices even further in the Chinese-run territory, which is already stuck in a recession due to the U.S.-China trade spat, violent street protests last year and the new coronavirus.

“The market is not going to get better in the next half to one year,” said a real estate investor who provides financing in the city. “If you’re in the Hong Kong market, I’d say de-risk if you can. Get your money back.”

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