ICBC (Asia) does not see any unjustified danger in lending to the adult real estate developers in Hong Kong, and will also continue to write home mortgages to support the recovery of the sector, according to a great executive director.
During the adoption of the opposite winds in the city’s real estate sector, such as the emergence of uneven loans and lukewarm sales, Wang Chayung, head of the corporate banking services department, said that the sector was looking forward to stability amid government support and developers’ initiatives to enhance business.
It is affiliated with Hong Kong, the largest bank in China in China, through the total number of “leading” assets of developers, including the new global development (NWD), as its customers. Wang said that these developers were traveling in the challenges of the sector “relatively well.” He added: “The quality of the loan is stable, and our willingness to pair more about installing the current shares,” he added, as the possibility of a significant increase in exposure has decreased due to controls on risk.
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His comment came to a media report that he said was held on the mainland last month to demand the four largest state -controlled states in the country – including parents in ICBC (ASIA), the Chinese Industrial and Commercial Bank (ICBC) – to maintain the current NWD credit lines and explore additional financing options. ICBC did not respond to the report.
ICBC (Asia) has been loaned to adult developers including NWD, Sun Hung Kai Properties and China Resources Land and China outside lands and investment, according to Bloomberg data.
Wang said that his ministry currently has “zero” loans other than Hong Kong developers, which are mainly blue chip companies. These companies have low gear levels – most of them are less than 50 percent. NWD is an exception, as the net gears ratio increased to 57.5 percent on December 31 from 55 percent on June 30, according to the latest temporary results.
The bank welcomes discussions with developers to reduce debt or borrowing costs. “We are ready to reduce costs and risks,” Wang said. For example, developers can switch to another currency with lower interest rates. The yuan can be an option because some developers can serve debt with revenues from mainland sales.
Wang said that for developers who have lower debt rates, the bank will continue to support their “good” and demands, without setting standards.
Wang Chiaung, head of companies in ICBC (Asia). Photo: Aleen Chuang Alt = Wang Zhiyong, head of corporate banking services at ICBC (Asia). Photo: Eileen Chuang>
“With regard to the distribution of loans and the share of shares, we are doing our best to comply with the needs of customers and ensure security,” Wang said. “So if they want to pay the loan early, reduce the shares, and reduce costs, we will fully cooperate and support it.”
On the retail sale side, the bank described an increase in real estate loans extending to Hong Kong home buyers over the past two years.
Wang said that the market participants were waiting for the stability of home prices. He added that “the curve of smooth height” would create a profitable situation for developers and housing housing.
Meanwhile, the bank has targeted the growth of loans from 3 percent to 6 percent this year, driven by the prosperous demand in sectors such as infrastructure, data centers, new economy, aviation rental and shipping rental, according to Wang.
The goal came after a difficult period in the city, which witnessed the total loans and progress in a decrease in 2.8 percent due to the conservative appetite towards construction, development and investment in the sector, according to Hong Kong’s monetary authority.
Wang said the total bank loans fell 0.2 percent to $ 450 billion, Hong Kong ($ 57.9 billion) on June 30, compared to December 31, 2023. The situation has improved since then, with distinguished loans increased by 3 percent in January.
“like [China’s] He said that the policies pushed the economy and settled on real estate and stock markets, and I can feel that since the beginning of this year, our credit and demand improved a lot compared to the end of last year.
Wang added that globalization efforts in China and Hong Kong will be a focus.
“With the rapid development of [artificial intelligence]Wang said that many Chinese companies are moving to Southeast Asia to create data centers in recent years, including some large mobile phones.
In addition, Wang said that the recovery of civil airlines after the Covid-19s, in addition to the increasing shipping needs amid geopolitical tensions, was feeding the rental work.
The bank is also looking to support the “new economy” in China, which describes high -growth sectors such as information technology, health care and renewable energy. Wang said that many large Chinese technology companies have established bases in Hong Kong, allowing the bank to support the financing application.
“We have our unique advantages based in Hong Kong, an international financial center,” said Wang. “We offer loans to customers in a wide range of currencies. Hong Kong has no controls in foreign currency exchange. It is a completely free trade outlet.”
