HK warns of home loan risks as prices soar: report

Hong Kong

THE Hong Kong Monetary Authority (HKMA) has warned banks in the city over the rising risks of property lending, according to the Oriental Daily, just as home prices notch up another record in the world's most expensive housing market and Citigroup Inc sees an imminent round of new cooling measures.

The authority sent letters last week raising concern over the increasing number of highly leveraged mortgages provided by developers, which boosts risks for banks lending to these companies, according to the Daily and other media reports on Saturday, citing unidentified people.