戴德梁行：今日全球楼市速览(2010.03.24)

Mainland China

1. The Bank of China, the country's No. 4 lender by assets, aims to rein in loan growth and boost its capital after a lending spree that helped it notch a forecast-beating fourfold jump in Q4 profit. A record RMB9.6 trillion in new loans by Chinese banks last year has raised worries about growth in bad loans and set off a capital-raising spree among lenders to cushion them from potential future losses. BOC has announced plans to issue up to 20% of its existing shares and as much as RMB40bn worth of convertible bonds in Shanghai. That would help it raise its capital adequacy ratio (CAR) to above 11.5% in 2010-12, up from 11.14% in 2009. That would still be below the 12% in the 3 previous years. BOC said it aimed to increase new yuan lending by 17% this year, after they expanded at almost 3 times that rate last year under China's economic stimulus package that included numerous incentives for banks to boost lending. BOC, in which Royal Bank of Scotland has a 2.69% stake, posted a jump in Oct-Dec profit to RMB18.9bn from RMB4.4bn a year before. Analysts had on average forecast a profit of RMB17.2bn, according to Thomson Reuters. The 4th quarter of 2008 had been impacted by impairment allowances the bank, which is China's top foreign exchange lender, booked against its exposure to United States mortgage-related securities. In a new initiative, the bank is talking with Temasek Holdings, a Singapore government investment company, to set up an equally owned rural business bank in China, adding the bank would have 40-60 branches at first. (Shanghai Daily).

2. Land buyers in Shanghai may have just 30 days - instead of the current 60 - to complete their payments as the city government tries to cool the booming property sector and runaway prices. Purchasers face having to pay 20 percent of the transaction amount within 10 days of a contract for land being signed and the remainder within the next 20 days, the Oriental Morning Post reported. Locally, mainland property stocks came under further selling pressure over concerns that Beijing will soon introduce more tightening measures. (The Standard).

3. Swire Properties said HSBC is to lease up to 27 floors of its Taikoo Hui office complex in Guangzhou from 2012. (The Standard).

Hong Kong

1. Expat executives in banking are fuelling a resurgence in the luxury market, firms say. Rents of luxury residential apartments and serviced units are back on the rise as expatriate businessmen return to Hong Kong following their withdrawal at the height of the global financial crisis, property agents say. HSBC global chief executive Michael Geoghegan and several other senior officers were relocated to Hong Kong last month. RBS, Thomson Reuters and JPMorgan's private bank also moved their top executives here last month. However, the demand for serviced suites with a higher monthly rent was stable as most of the companies were still cautious on expansion. (SCMP).

2.Wharf (Holdings) almost trebled its net profit to a record HK$17.5 billion, thanks largely to a significant fair value gain from investment properties. Underlying profit for the year ended December 31 rose 86 percent to HK$7.8 billion. Commercial flagships Harbour City and Times Square contributed 62 percent of the HK$8.6 billion operating revenues, while mainland properties accounted for 13 percent. Wharf sold 4.7 million square feet of mainland residences for more than HK$5 billion last year. (The Standard).

3. Competition for buyers in the primary market is set to increase after Cheung Kong (Holdings) launched aggressive discounts and super-low mortgages for its Festival City project, next to Tai Wai station on the East Rail Line. Cash buyers are being offered a 5per cent discount on list prices, and owners or tenants living in apartments above 27 MTR stations in Hong Kong, Kowloon and New Territories who buy units in the development will get a 2 per cent discount. This means some buyers will get up to 7 per cent discount on list prices. The developers have not yet published price lists, but agents believe units will sell for about HK$13,000 per square foot. (SCMP).