HSBC Holdings (00005) reported a sharp increase in commercial real estate loan defaults in Hong Kong, reaching $3.2 billion, a 4.56-fold increase.

According to media reports, as of the end of June, HSBC HOLDINGS (00005) had defaulted on commercial real estate loans in Hong Kong amounting to $3.2 billion, a sharp increase of 4.56 times from $576 million six months ago, due to the sluggish Hong Kong property market. Current CEO Ali Qiao Zhi, who was still serving as Chief Financial Officer in early August, mentioned that although a large amount of loans had been classified as credit-impaired loans, these loans were all performing well. The report pointed out that as of the end of June, HSBC's total global commercial real estate loans amounted to $79 billion, with Hong Kong being HSBC's largest commercial real estate loan market, accounting for 45% of its risk exposure. The $3.2 billion in non-performing loans mentioned above accounts for 9% of the bank's total commercial real estate loans in Hong Kong. HSBC responded that many borrowers are still paying interest, but the bank declined to provide related data and also refused to respond to Ali Qiao Zhi's comments.