The Hong Kong Monetary Authority expressed its concerns to banks that have refused to offer mortgage loans for the uncompleted flats developed by the China Evergrande (3333) Thursday, sources told Sing Tao Daily, the sister newspaper of The Standard.
Five banks including HSBC (0005), Bank of East Asia (0023), Standard Chartered (2888), China Construction Bank (Asia), and ICBC (Asia), announced they will not offer mortgages to the debt-laden Evergrande's uncompleted flats in Emerald Bay Phase 2 in Tuen Mun, and The Vertex in Cheung Sha Wan on Wednesday.
Some industry insiders claimed the banks received the message from the authority asking that whether they accept the mortgage application for the Evergrande flats. "If not, did the bank notify the front line? Did the bank issue a notice and offer guidance to the customers? Is it applying to the approved mortgage?"
Some market insiders said the HKMA's approach was hard and it may affect the image of the banks.
HKMA spokesman responded that the authority would communicate with banks on different topics regularly but no comment on the exact content.
Hang Seng Bank (0011) replied that the bank has accepted the mortgage applications for all property types, including completed and uncompleted flats.
Bank of East Asia said approved mortgages are not affected and will continue to accept the completed flat mortgages of the two projects. Other banks had no reply.
