〈The Standard, Jan 18, 2025〉Developer China Vanke (2202), which has a record amount of debt coming due, told some creditors prior to turbulence in the company’s bonds and shares on Friday that it has prepared enough cash to repay a 2.95 percent yuan bond due January 27, said people familiar with the matter.
The bond has 3 billion yuan (HK$3.19 billion) outstanding, according to Bloomberg-complied data, and last traded at 98.4 yuan on Wednesday, indicating investors’ confidence that payment will be made. That’s in contrast to its 3.45 percent yuan bond due in May, which was at 73 yuan on Friday.
Vanke didn’t immediately offer a comment Friday.
It isn’t clear when or whether the builder will remit funds to repay the January 27 note, said the people, who asked not to be identified, citing private conversations.
〈Hong Kong Business, Jan 17, 2025〉According to PwC Hong Kong (PwC), property transaction slowdowns in 2024 have led to a significant reduction in land sales and stamp duty revenues. PwC estimated that land sales revenue will amount to $8b, a drastic 76% drop from the government's original forecast of $33b.
Meanwhile, stamp duty is expected to generate only $58b, which is 18% lower than the projected $71b. Similarly, revenues from profits tax and salaries tax are expected to stand at $247.6b, a 10% shortfall from the original projection of $275.6b.
As of March 2025, fiscal reserves are projected to drop to $639.8b, the lowest in HK's history. If government spending continues unchecked, PwC warned of deficits over the next four years. The firm called for a comprehensive review of public expenditure to contain costs whilst balancing the impact on the public.
〈Asian Post, Jan 16, 2025〉At least 15 lease modifications and two lot extensions were registered in the Land Registry during the final quarter of 2024, the Lands Department said.
Among these, two modifications were technical in nature and did not involve any premium.
The transactions included seven on HK Island, six in Kowloon, and four in the New Territories. No private treaty grants or land exchanges were recorded.
The total land premium from these transactions amounted to $618.7 million.
〈Hong Kong Business, Jan 15, 2025〉It's employment, not residential prices, that will weigh onHong Kong banks' loan portfolios over the next two years.
History shows sharp falls in economic growth or jumps in unemployment rates are bigger factors for credit performance on Hong Kong residential mortgage loans, S&P Global Ratings said in a January 2025 report.
“We expect the city's banks will face minor but manageable pressure on such portfolios in the next two years,” the ratings agency said.
The hit to Hong Kong residential prices over the past few years won't knock on to banks.
〈RTHK News, Jan 15, 2025〉Speaking at a forum organised by the Chinese General Chamber of Commerce, Chan said the government hoped to achieve a fiscal balance in three years, but the SAR would focus more on managing costs than generating revenue.
"In terms of raising taxes, first, we must consider our competitiveness, comparing to our neighbouring regions and the impact on attracting enterprises and investment," he said.
"Second, as society recovers from the pandemic, including small and medium enterprises, big corporations, and even individuals, we have to rebuild our balance sheets. We hope to provide more room for companies and individuals to strengthen their financial abilities."
