Major Hong Kong Commercial Banks to raise mortgage rates following tightening by the city's de facto central bank

According to Reuters news agency the de facto central bank of Hong Kong has tightened lending criteria. Commercial Banks will have to set aside more capital when they lend as the risk weighted floor has been increased 10 percentage points to 25 percent for new residential mortgages effective Friday 26 May.

Standard Chartered, HSBC Holdings PLC and Bank of China Hong Kong have confirmed they will raise their HIBOR-linked mortgage interest to HIBOR + 1.4 percent shortly.

More details from Reuters Major HK Banks to raise mortgage rates