Hong Kong’s debt-laden developers and their creditors are set to face intensifying financial pressure as bond maturities are slated to jump by nearly 70 per cent next year amid falling sales and valuations for the city’s economically crucial property sector.
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Property and its related sectors account for roughly a quarter of Hong Kong’s GDP, and the industry’s rising non-repayments will not only weigh on its economic prospects but also cast a cloud over creditors, including HSBC, with sizeable exposure to developers in the Asian financial hub.
Local property developers’ bond maturities will climb to US$7.1 billion in 2026 from US$4.2 billion this year, according to LSEG data and Reuters calculations.
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