HSBC Marks Majority of Hong Kong Commercial Property Loans as Impaired

12:37 AM EDT, 08/12/2025 (MT Newswires) -- HSBC Holdings (HSBA.L) has marked 73% of its commercial real estate loans in Hong Kong as impaired or risky, compared with less than 30% a year ago, London's Financial Times reported on Tuesday. The British bank made a total of $32 billion in commercial real estate loans in Hong Kong, which is experiencing an office space glut with sluggish demand. Analysts noted that HSBC's local lender, Hang Seng Bank, has a higher proportion of loans to smaller real estate developers and companies, with some going through financial trouble. The publication noted that the bank set aside $1.1 billion for expected credit losses in the second quarter, with $400 million assigned to the Hong Kong real estate sector.