HSBC HOLDINGS(HK:00005) Zhi Tong Cai Jing·2025-08-25 06:33Core Viewpoint - HSBC has launched a new fixed-rate mortgage plan with an initial interest rate of 2.73% for the first three or five years, which is lower than the current market rates, indicating a strategic move to attract borrowers amid expectations of interest rate cuts in Hong Kong [1][2] Group 1: Mortgage Plan Details - The new fixed-rate mortgage plan offers a rate of 2.73% for the first three or five years, followed by a rate of P-1.75% (where P is currently 5.25%) [1] - The current HIBOR-based mortgage rate (H rate) is at 3.5%, and the new fixed-rate plan is 0.77% lower, potentially reducing monthly payments by nearly 10% [1][2] - The fixed-rate plan is expected to be popular due to its competitive rate compared to the anticipated H rate drop to 3.25% later this year [2] Group 2: Market Context and Expectations - The expectation is that the Prime Rate (P) will only decrease by 0.25% before completing its reduction cycle, which will keep the H rate relatively high [2] - The H rate is influenced by market supply and demand for funds, leading to potential volatility, while the P rate is more stable and follows U.S. interest rate trends [1] - Current 1-month HIBOR is at 2.73%, and unless there are significant changes in fund flows, the H rate will likely remain based on the P rate's capped level [2]