<div id="readability-page-1"><div>According to a Bloomberg report, special assets bankers in Hong Kong are working to reduce up to HKD200 billion in bad loans, which have pushed the citys non-performing loan ratio to a 20-year high. It is understood that these bankers are increasingly resorting to last measures, forcing borrowers to sell collateral or undergo liquidation. These loans are typically linked to losses in Hong Kongs commercial real estate sector.Sources said that as the local economy rebounds, banks hope to cut bad loans in order to free up capital for new lending. At least six banks in Hong Kong have increased headcount for special assets bankers. Among them, BANK OF E ASIA (00023.HK) +0.020 (+0.143%) Short selling $1.37M; Ratio 7.033% and the Hong Kong branch of United Overseas Bank have nearly doubled such staffing since 2024, while BOC HONG KONG (02388.HK) +0.280 (+0.616%) Short selling $123.48M; Ratio 26.009% and Hang Seng Bank have also expanded related teams.The report said BOC HONG KONG has appointed a PricewaterhouseCoopers partner as receiver to assist in the sale of NEO Tower on Hoi Bun Road in Kwun Tong, seeking to recover as much as possible from a HKD5.5 billion loan. Separately, BANK OF E ASIA has appointed an Ernst &amp; Young partner as receiver to take over and sell the One Bedford Place commercial project in Tai Kok Tsui, developed by Lok Feng Group. (mn/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-08 16:25.)</div></div>

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A Bloomberg report reveals that Hong Kong banks are increasing hiring of special assets bankers to address up to HKD200 billion in bad loans, which have led to a 20-year high in non-performing loan ratios. As the economy rebounds, banks aim to reduce these loans to free up capital for new lending. Notably, BANK OF E ASIA and BOC HONG KONG have significantly expanded their teams, with BOC HONG KONG appointing a PricewaterhouseCoopers partner to assist in recovering funds from a HKD5.5 billion loan.

Report Says Hong Kong Banks Boost Hiring to Cut Up to HKD200B in Bad Loans