HKMA Eddie Yue Forecasts HK Banks' Bad Loan Ratio to Keep Declining

HKMA Chief Executive Eddie Yue said while meeting reporters this morning (17th) that Hong Kong banks' bad loan ratio has edged down since the end of last year, as the property market has become more stable and banks have also made substantial provisions. He forecast the bad loan ratio to maintain a gradual downtrend.

Separately, he said the HKMA is studying increasing gold allocation within the Exchange Fund to diversify assets and spread risks, while also aiming to participate more actively in Hong Kong's spot gold and other financial product markets to support the development of Hong Kong's gold market ecosystem, in line with the HKSAR government's goal of developing a gold and commodities trading hub.