HSBC, Hang Seng credit losses deepen on Hong Kong property woes

Banks expect pressure on bad loans to persist

Hong Kong’s property sector downturn has prompted lenders, including HSBC, to scrutinize their existing exposure to property developers. (HSBC photo library)

LORRETTA CHEN

July 30, 2025 16:45 JST

Updated on July 30, 2025 17:27 JST

HONG KONG — Bad loans are ballooning at Hong Kong-listed HSBC Holdings and its majority-owned Hang Seng Bank as the financial hub’s commercial real estate slump weighs on the banking sector.

HSBC on Wednesday reported $1.9 billion in expected credit losses for the first half of this year, nearly double the amount recorded in the same period of 2024, including $500 million in charges related to the Hong Kong commercial real estate sector.

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HSBC, Hang Seng credit losses deepen on Hong Kong property woes

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