The Hong Kong economy is in a downturn, and last year's second quarter saw the Banks' liquidity coverage ratio reach a record high.

According to a report by Bloomberg, Hong Kong's economy is in a recession, and the Banking Industry is hoarding a large amount of cash and liquidity. Banks such as HSBC (00005.HK) and STANCHART (02888.HK) had a liquidity coverage ratio exceeding 180% in the second quarter of last year, setting a historical high, far exceeding the regulatory requirement of 100%. According to the latest data from the Monetary Authority, the ratio slightly decreased to 178.4% in September. The report states that the banks' cash hoarding has raised concerns among regulatory authorities, leading to the establishment of a joint "SME Financing Task Force" by the Monetary Authority and the Hong Kong Association of Banks in August last year to monitor the Business strategy of banks in supporting SMEs.

AASTOCKS09:15

Hong Kong Foreign Currency Reserves Decline as of End-December 2024

MT Newswires09:08

The Monetary Authority reported that by the end of last month, Forex reserves fell to 421.4 billion USD.

The Hong Kong Monetary Authority announced that the official Forex reserve Assets of Hong Kong at the end of December 2024 amounted to 421.4 billion USD, compared to 425.1 billion USD at the end of November. There were no unsettled Forex contracts at the end of December and November 2024. The total Forex reserve Assets of 421.4 billion USD is equivalent to more than five times the currency in circulation in Hong Kong, or approximately 39% of the MMF money supply M3.

AASTOCKSJan 7 16:33

Hong Kong Businesses' Growth Momentum Slows in December 2024

MT NewswiresJan 6 10:00

In December of last year, Hong Kong's PMI slightly decreased to 51.1, with the growth momentum gradually fading.

S&P Global announced that the seasonally adjusted Purchasing Managers' Index (PMI) for Hong Kong dropped slightly from 51.2 in November to 51.1 in December last year, reflecting an improvement in the business environment for three consecutive months, but the degree of improvement was the mildest during this period, with the growth momentum in output further weakening. Looking at the data from December last year, indices such as output, new Orders, employment, and procurement inventory were all lower than those in November, leading to a month-on-month decline in the PMI value. Jingyi Pan, Deputy Director of Economic Research at S&P Global Market Intelligence, stated that the data indicates sustained growth momentum at the end of last year. The average output index for the fourth quarter was the highest since the second quarter of 2023.

AASTOCKSJan 6 08:47

K. Wah International Holdings: It is expected that Hong Kong property prices will remain stable in the first half of the year, and if interest rates are lowered in the second half, it will support an increase in property prices.

Huang Guangyao stated that the Hong Kong property market is expected to remain dominated by new units this year, thus property prices will stay stable in the first half of the year. When the situation of developers clearing inventory is relatively ideal, prices are expected to increase. Additionally, it is estimated that there will still be opportunities for interest rate cuts in the second half of the year, all of these factors support the rise in property prices.

Zhitong FinanceJan 3 16:01