Hong Kong’s three note-issuing banks – HSBC, Standard Chartered and Bank of China (Hong Kong) – will trim their prime lending rates for the first time since December, reducing funding costs and providing some relief to businesses and mortgage borrowers in the city.
HSBC and the Hong Kong unit of Bank of China said on Thursday that they would drop their prime lending rates by 12.5 basis points to 5.125 per cent – effective on Friday at HSBC and on Monday at BOCHK. Standard Chartered said it would cut its prime rate by the same margin to 5.375 per cent from Monday. All three said in separate statements that they would cut their savings rate by the same margin to 0.125 per cent.
Other lenders are expected to announce their rate decisions later on Thursday.
“We believe the adjustments announced today are appropriate considering the US rates decision and the local market conditions,” HSBC’s Hong Kong CEO Luanne Lim said in a statement.
“Including this reduction, HSBC has lowered its Hong Kong dollar best lending rate by 75 basis points in this rate-cut cycle since September 2024,” she said. “We will continue to monitor the external environment and local economic outlook, and adopt an agile approach when we evaluate future rate decisions.”
