Hong Kong's banks face at least two quarters of worsening asset quality and...
), are seeing a drop in demand for mortgages, credit card usage and corporate loans, bankers with knowledge of the matter said.
“Some of the companies in Hong Kong were already hanging from a thread after months of civil unrest and now the virus has come on top of that,” said Sonny Hsu, senior credit officer for financial institutions group at Moody’s Investors Service. “ first quarter is usually a busy month for us as clients work on their plans for the year ahead. This year, the trade finance volume is down 15% to 30% in China and Hong Kong,” a senior banker at a large global bank in Hong Kong said.The biggest impact on asset quality in Hong Kong will come from retail, hotels and property as the city’s economy, already in recession after months of anti-government protests, faces increased headwinds due to the coronavirus, the banker added.
Unemployment in Hong Kong reached its highest in three years in January at 3.4%, while bankruptcy petitions submitted rose to 703 last month up from 665 a year-ago, data showed.
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