Major Hong Kong banks launch deposit rate race ahead of year-end, pushing rates above 3 percent

Hong Kong's banking giants have launched a time deposit rate race ahead of the year-end, with the Hongkong and Shanghai Banking Corporation, Hang Seng Bank (0011), Standard Chartered Bank (Hong Kong) and Bank of China (Hong Kong) (2388) all raising their three-month Hong Kong dollar rates to 2.4 percent. 

The first three also lifted their six-month rates to the level. 

Similar moves have been done by smaller lenders, with more than 10 offering rates above 3 percent.

OCBC Bank now offers the highest three-month rate at 3.2 percent, while WeLab Bank leads six-month and 12-month terms at 3.05 percent and 3.0 percent respectively.

The intensified competition for deposits comes amid uncertainty over the US Federal Reserve's December rate decision.