HKMA urges banks to ease developer refinancing amid K-shaped property recovery: sources

Hong Kong’s commercial real estate market is experiencing a “K-shaped recovery,” with industrial and commercial properties in non-core districts still under pressure and some developers soon facing refinancing hurdles, according to sources.

The sources said the Hong Kong Monetary Authority recently discussed with a few representatives from banks and the property sector arrangements for developers’ maturing debt.

It marked another move by the authority to encourage banks to support developers’ refinancing and prevent the nascent recovery in the commercial property market from being derailed.

The meeting was chaired by HKMA deputy chief executive Arthur Yuen Kwok-hang, with more than 10 banks attending, including local, Chinese, and foreign institutions.

Yuen encouraged banks to continue supporting developers’ refinancing or loan extensions, and warned that any problems among developers would inevitably hit the commercial real estate market again and weigh on commercial property prices.
 

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