HK regulators move to head off stop rate war

10:04 | 04.03.10

The move came after banking giant HSBC last month launched the city's lowest mortgage rate - a 0.65 percentage point premium to the one-month Hong Kong interbank offered rate (Hibor).

HSBC's offer, the lowest in 20 years, was soon matched by its rivals.

The Hong Kong Monetary Authority fears that the intense price competition in mortgages is not sustainable and puts smaller banks at risk in the event property prices slide and global interest rates rise.

South China Morning Post

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