$PUBLIC FIN HOLD (00626.HK)$ According to industry figures q...

$PUBLIC FIN HOLD(00626.HK)$ According to industry figures quoted by local media, 160 financial executives have held bank and financial debts, unable to repay and declare bankruptcy in a climate of high interest rates, turning the debts into bad books. On the other hand, Hong Kong house prices have fallen by almost two per cent from their highs, meaning that the value of the collateral obtained by the creditors, even if the property was closed, and the defaulting lenders were forced out of the market.
Mass Financial, a major financial services company, reported that its credit loss expenditure increased by 1.48 times year-on-year to about $3.24 billion last year, mainly due to lower commercial property prices and the price of public vehicle licences. The company explained that other mortgage loans were also impacted by high interest rates due to a large commercial borrower and certain leasehold loans. In addition, the Government revised the statutory lending rate from 30 December 2022 to reduce the annual interest rate from 60 cm to 48 cm. This will significantly compress the earning space for “financiers”. In addition, adverse factors such as the downturn in the Hong Kong economy, individual borrowers and even SMEs go bust, also increase the risk of loan delinquency. This means that the economic situation is difficult, and the “wealth” that is driven by borrowing money is also difficult to find food.
160 “Fortunes” are finished! Financial companies known as “financial corporations” have a history of not doing business, but according to the Companies Registry, the number of licensed lenders fell to 2,270 last year, down 144 year-on-year; up to 2254 in January this year, a cumulative decrease of 160 during the period

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