Breakingviews - Hong Kong's Property Challenges Put Banks to the Test in Real-World Conditions
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 29 2025
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Source: Reuters
Current Real Estate Crisis: Hong Kong's banking sector is under pressure due to a significant decline in real estate prices, which have dropped over 30% since 2021, testing the resilience of banks and the effectiveness of regulatory measures implemented by the Hong Kong Monetary Authority (HKMA).
Regulatory Measures and Bank Performance: The HKMA has taken proactive steps over the past decade to limit banks' exposure to the property market, resulting in a strong capital ratio for banks, which have remained profitable despite rising non-performing loans, although concerns persist about potential further declines in property values.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
