IPFS News Link • Economy - International
IMF Sounds The Alarm On The Hong Kong Housing Bubble
• Agence France Presse"The sharp run-up in house prices raises the risk of an abrupt correction," the IMF said in its annual review of Hong Kong's economy.
"A sharp price correction would lead to falling collateral values and negative wealth effects, which could trigger an adverse feedback loop between economy activity, bank lending, and the property market.
"The property sector is the main source of domestic economic risk," the Washington-based organization said.
It however said the chances of a price correction that is large enough to generate a major macroeconomic and financial consequences is "fairly low in the near term".