In recent months, market participants have been closely following global financial developments, particularly the pace of interest rate hikes in the US. For many Hong Kong residents, local interest rate movements directly impact their ability to purchase properties or their financial burden of repaying mortgages. If long-term interest rate risk is a key concern to them, an option worth considering is the Fixed Rate Mortgage Scheme.

The growth rate of mortgage lending nearly doubled, reaching +1.3% after +0.7% in June, according to preliminary data. About a half of the issued loans were market-based mortgages, which was owing to an overall decrease in interest rates.

Banks are asked to fulfill their obligations in a market-oriented and law-abiding manner as well as to assume their social responsibilities to push for home deliveries.

Even if risks arise, they can be effectively controlled

Major Chinese banks allowed clients in some cities and provinces hard-hit by COVID-19 to delay their mortgage payments to assist clients with payment difficulties at a crucial moment in the fight against the pandemic.

Mortgage interest rates in some major Chinese cities have seen adjustments following the latest benchmark lending rate cut.

Mortgage rates were reduced along with the lowered benchmark lending rate of loan prime rates in many Chinese cities, Securities Daily reported on Jan.23.