Hong Kong Property May Bottom as Borrowing Costs Drop, Jefferies Says
Declining interest rates in Hong Kong are increasing the chances the residential property market bottoms out, according to Jefferies.
The one-month Hong Kong Interbank Offered Rate has plunged 205 basis points in the past four days, potentially bringing relief for a market hammered by high interest rates and slumping prices. Money markets are flushed after the monetary authority sold HK$129.4 billion ($16.6 billion) of local currency to stop it from strengthening past its pegged range.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
39 minutes ago
- Bloomberg
Jio BlackRock Said to Hire Kohli as CIO of Mutual-Fund Unit
The newly formed mutual-fund arm of Jio BlackRock Asset Management has appointed Rishi Kohli as its chief investment officer, according to people familiar with the matter. Kohli will start in the third quarter of this year, the people said, asking not to be named as the information is private. He was managing partner and chief investment officer for hedge fund strategies at financial-services provider InCred Capital in Mumbai and previously worked at Avendus and ProAlpha Capital, according to his LinkedIn profile.
Yahoo
40 minutes ago
- Yahoo
India to tighten remittance rules, bar offshore time deposits, sources say
By Shubham Batra MUMBAI (Reuters) -India's central bank plans to tighten rules for overseas remittances by resident Indians, barring them from holding foreign currency deposits with lock-in periods, two government sources said. The Reserve Bank of India (RBI) will amend regulations to prevent overseas transfers from being used to park money in time deposits or other interest-bearing accounts abroad, one of the sources said. "This is akin to passive wealth shifting, which is a red flag for the RBI in a still-controlled capital regime," the first source familiar with the thinking of the central bank said. The proposed changes reflect India's cautious stance on a rise in outward remittances and full convertibility of the rupee, as authorities strive to safeguard foreign exchange reserves and manage currency volatility, the sources said. Overseas investments by individuals fall under the central bank's Liberalised Remittance Scheme (LRS) — which allows resident Indians to remit up to $250,000 in a single year — for purposes ranging from foreign education, travel, equity and debt investments to medical treatments. While discussions with the government are ongoing, the RBI aims to ensure such deposits cannot be made even under alternate names, the second source said. Both sources declined to be identified due to the confidentiality of the talks. The finance ministry and the RBI did not respond to emailed requests for comment. The move is part of a comprehensive review of the legal framework governing the scheme to simplify the regulations, a priority highlighted by the central bank in its annual report. RBI data showed that deposits under outward remittances by resident individuals rose sharply to $173.2 million in March from $51.62 million in February. Outward remittances typically spike in March as it allows residents to maximise their annual limits and optimise taxes, making it the busiest month under LRS but the RBI is concerned that a portion of this may be getting passively parked. For financial year 2024/25, total annual outward remittances under the scheme dipped but remained high at nearly $30 billion compared with $31 billion a year ago. The sources did not disclose the amount currently held in foreign currency deposit accounts, but said the move is "preventative". India's outward remittances under the scheme have steadily increased, particularly as fintech platforms and private banks have made global investing easier for retail investors. "The move addresses a growing misuse of the scheme as a vehicle for passive capital export," the second source said. "It also aligns the scheme more closely with India's calibrated approach to capital account convertibility." India has remained cautious on allowing unrestricted outflows, partly to preserve its foreign exchange reserves and manage currency volatility. The revised rules will not affect permissible foreign investments in equities, mutual funds or property under the LRS, the second source said.
Bloomberg
40 minutes ago
- Bloomberg
ECB's Villeroy Says No Fixed Position on Future Rate Decisions
European Central Bank Governing Council member Francois Villeroy de Galhau said he has no fixed position on future interest rate moves and that decisions will depend on data. 'For future rates, we'll see depending on how inflation evolves,' he told Franceinfo radio on Thursday. 'I never have a fixed position in advance — I believe in pragmatism and agility on monetary policy, we'll see.'
