The Hong Kong Monetary Authority (HKMA) does not need to impose any further tightening measures on the mortgage market as the existing policies are working, according to Mark McCombe, Chief Executive of Hong Kong Operations at HSBC.

In a report by The Standard, McCombe said that the local property market remains robust and stable.

“I would like to avoid using the word ‘bubble’ to describe the local property market,” he said, noting that housing rents and prices were driven up by more people deciding to live in the territory.

McCombe said the latest adjustments in the bank’s HIBOR-based mortgage and prime rates will boost interest margins and help to maintain its top spot in the local home loan market.

He also noted the narrowing of the gap between New York, Hong Kong and London, as more firms are launching their initial public offerings (IPO) and setting up offices in the special administrative region (SAR).

As for China, McCombe anticipates another interest rate rise this year. Beijing increased its benchmark lending and deposit rates by 25 basis points on 6 July 2011.

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