Yu Weiwenz: Now is the appropriate time to relax Hong Kong's countercyclical measures and related regulatory requirements.

The Hong Kong Monetary Authority has revised the countercyclical macroprudential measures applicable to property mortgage loans and other related regulatory requirements, including adjusting the loan-to-value ratios for owner-occupied residential properties and non-residential properties, and suspending the stress test requirement for property mortgage loans assuming a 2% increase in interest rates. The Hong Kong Monetary Authority pointed out that after relaxing the loan-to-value ratio limit to 70% for owner-occupied residential properties worth HK$30 million or less, it has covered 98% of the general property market transactions. Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, stated that the adjustments to the measures took into account various factors, including the continuous decline in property prices and transactions, striking a balance between reducing the impact on citizens' homeownership and maintaining risk control in the banking system. He also noted that with the possibility of the end of the US interest rate hiking cycle and limited chances of further interest rate hikes in the near future in Hong Kong, it is deemed an appropriate time to relax the measures. Eddie Yue emphasized that despite the revision of the measures by the Hong Kong Monetary Authority, the banking system still has ample buffers to cope with significant adjustments in property prices. He reminded citizens to be prudent in managing their financial risks when purchasing property. Eddie Yue also mentioned that after this round of adjustments, most of the countercyclical measures have almost reverted to the levels seen in 2009 to 2010. Further adjustments will be reconsidered in the future, taking into account factors such as property market developments and the Hong Kong economy, and measures will be introduced as needed.