Hong Kong Monetary Authority's Eddie Yue: Hong Kong's commercial property market still faces some challenges, but risks are controllable.

Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, stated in an interview that the residential property market in Hong Kong is stabilizing, with relevant indices rising by 1% in the first nine months of this year, while the commercial property market still "faces some challenges." For the banking industry, risks are "completely manageable." He mentioned during an international financial leaders investment summit that risks are spread among different banks and some small to medium-sized developers. The Hong Kong banking industry has set aside very high provisions and the capital adequacy ratio exceeds 21%, well above the international standard of 8%. He believes that this is a very strong buffer that allows them to withstand any shocks or challenges in any area. He had previously stated that the Hong Kong Monetary Authority has been "closely monitoring" the overall stable development of the banking industry in Hong Kong. Banks in Hong Kong mainly have exposure to the risks of local property development and investment loans from relatively well-off large local enterprises. As for the risks faced by local small to medium-sized property developers and investors, including some with weaker financial conditions or higher asset-liability ratios, banks have taken credit risk mitigation measures early on and most loans are collateralized. In addition, banks do not have excessive concentration on any single borrower.