=MARKET BUZZ: Developers Fall After Fed Move; Local Banks May Up Prime Rate: CMB
HONG KONG (Jun 14) -- Most Hong Kong property developers and Chinese developers underperform broader market on Thursday, after Federal Reserve signals a total of four rate hikes this year, up from a previous estimate of three increases. Sino Land off 1.3%, Henderson Land down 0.9% and CK Assets 1% lower. Hong Kong Monetary Authority raised its base rate by 25bps to 2.25% today, following upward shift in U.S. federal funds rate. CMB International warns some Hong Kong banks may revise up prime rates today, pressuring the broader market, especially developers and utilities. Hong Kong & China Gas sheds 0.4% and Power Assets is down 0.7%. Bank of America Merrill Lynch revises up its forecast profile of 3-month HIBOR, a benchmark rate for corporate lending in Hong Kong, to end the year at 2.1%. Among mainland developers, China Vanke leads with 3.2% drop; Country Garden Holdings sheds 1.8%. Hang Seng Index off 0.6%.
- By Amy Lam; amy.lam@NikkeiNewsrise.com; +85239605153
- Edited By V. Phani Kumar
- Send Feedback to feedback@NikkeiNewsRise.com
- Copyright (c) 2018 Nikkei NewsRise Asia Pte Ltd.