HK Monetary Authority warns against growth risks

Growth did occur in Hong Kong last year but what about in 2012?

The Monetary Authority's end-2011 review of the economy presented a rosy picture of a buoyant Hong Kong: the banking sector's total loans rose 20% and residential mortgage loans increased 8%, said Deputy Chief Executive Arthur Yuen. Profits also rose in interest and non-interest income, with total deposits up 11%.

Lying in wait beneath this brilliant surface, however, are serious threats to this growth in 2012.

Yuen said Hong Kong's business sector this year should:

• Monitor credit growth, asset quality, funding strategies, liquidity positions and risk management.

• Conduct more on-site examinations of Mainland-related business.

• Closely watch the local property market.

• Closely monitor European market developments .