Crisis Risks Ease, But Property Market A Worry

Emergency interest rate cuts and liquidity injections from the Hong Kong Monetary Authority (HKMA) helped to prevent a sharp contraction in credit. However, a mixed picture has evolved in the banking system, with a weak economy causing credit card defaults to rise and a thriving property market supporting mortgage loan portfolios. The risk is that the banking system is now even more dependant on the property market.

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