Hong Kong Mortgage Corporation Limited interim results highlights for 2025
The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Mortgage Corporation Limited (HKMC) today (September 26) announced the highlights of its interim results for 2025.
Business Highlights
The HKMC and its subsidiaries continued to fulfil their core missions and social objectives, contributing to the steady growth of Hong Kong's economy amid an increasingly complex and evolving environment. The missions of the HKMC are to promote: the stability of the banking sector, wider home ownership, the development of the local debt market, and the development of the retirement planning market.
Asset Purchase
Acquired HK$2.7 billion of loan assets (1H 2024: HK$6.7 billion)
Purchased HK$46 million of loans (1H 2024: HK$32 million) from the Dedicated 100% Loan Guarantee Schemes (DLGS)
Outstanding balance of loan portfolio was HK$85.6 billion as at June 30, 2025 (December 31, 2024: HK$95.5 billion)
Debt Issuance
Issued corporate debts of HK$23.3 billion for 1H 2025 (1H 2024: HK$57.1 billion), being one of the most active issuers in the domestic market of Hong Kong dollar corporate bonds.Among them, the HKMC had issued 30-year bonds totalling HK$500 million to promote the fixed-rate reverse mortgage business and local debt market development
Outstanding balance of debt securities issued was HK$135.6 billion as atJune 30, 2025 (December 31, 2024: HK$148.3 billion)
Credit ratings of AA+ from S&P Global Ratings and Aa3 from Moody's, same as those of the HKSAR Government
Mortgage Insurance Programme (MIP)
New MIP loans drawn down amounted to HK$17.5 billion (1H 2024: HK$28.3 billion), of which 61 per cent were secured on properties in the secondary market
Facilitated home purchase for about 239 000 families in total since its launch in 1999, with an aggregate loan drawdown of HK$887.2 billion
SME Financing Guarantee Scheme
For the 80% Guarantee Product, more than 28 500 applications were approved with a total loan amount of approximately HK$122.4 billion since its launch in 2012.For the 90% Guarantee Product, over 16 800 applications were approved with a total loan amount of approximately HK$29.6 billion since its launch in 2019
In respect of the Special 100% Loan Guarantee, more than 67 100 applications were approved with a total loan amount of approximately HK$143.9 billion since its launch in 2020. An equivalent amount of loan assets was purchased by the HKMC. The application period expired at end-March 2024
Since the inception of each guarantee product, the 80% and 90% Guarantee Products had benefitted over 23 800 local small and medium-sized enterprises (SMEs) and around 391 700 related employees. The Special 100% Loan Guarantee had benefitted more than 40 000 local SMEs and around 400 000 related employees
Dedicated 100% Loan Guarantee Schemes
Under the DLGS for Travel Sector and the DLGS for Cross-boundary Passenger Transport Trade, 227 applications were approved with a total loan amount of approximately HK$220 million since the launch of the DLGS in 2023. Their application periods expired in October 2024
In respect of the DLGS for Battery Electric Taxis, 374 applications were approved with a total loan amount of approximately HK$121 million since its launch in 2023
Annuity Business
The annuity business has taken a total of 11 531 policies (1H 2024: 2 295 policies), with total premiums of HK$5.4 billion (1H 2024: HK$1.1 billion)
Since its launch in 2018, it had helped about 30 000 senior citizens to convert their savings into lifelong stable income
Reverse Mortgage Programme
488 applications were approved (1H 2024: 546 applications), with an average property value of HK$4.1 million and an average monthly payout of HK$9,800
Since its launch in 2011, 8 412 applications were approved
Financial Highlights
The unaudited consolidated profit after tax of the HKMC for 1H 2025 was HK$53.3 million (1H 2024: HK$9 million). The improvement in profitability was largely attributable to the increase in income from the placements with the Exchange Fund, reduced negative impact on fast-growing reverse mortgage business from movement of property price for 1H 2025 as compared to 1H 2024, foreign exchange gain arising from exposures in cash and debt investments amid favourable market conditions, and increase in net interest income. Such gains were partly offset by the increase in accounting loss from insurance results of annuity business, reflecting the increase in new policies written from the spillover effect of the payout enhancement and discount campaign launched in 2024.
Since the HKMC is mandated to promote the development of the retirement planning market in Hong Kong, it is dedicated to advancing the annuity and reverse mortgage businesses which are subject to the increasing sensitivity and volatility of mark-to-market accounting effects. For the better assessment of financial performance, after excluding (i) the accounting results of HKMC Annuity Limited (HKMCA), a wholly-owned subsidiary of the HKMC operating annuity business; (ii) the impact of property price changes on the reverse mortgage business given its long-term nature; and (iii) the consolidation adjustments in respect of loan portfolios with insurance cover provided by HKMC Insurance Limited (HKMCI), another wholly-owned subsidiary of the HKMC operating general insurance business, the adjusted profit after tax, annualised return on equity and cost-to-income ratio for 1H 2025 would be HK$874 million, 6.2 per cent and 14.2 per cent respectively (1H 2024: HK$468 million, 6.2 per cent and 22.4 per cent respectively).
As at June 30, 2025, the embedded value of the annuity business was about HK$21.6 billion on the basis of the Insurance Ordinance (Cap. 41), which comprised HK$18.5 billion of total equity and HK$3.1 billion of present value of future profits. This indicates a solid financial position of the HKMCA to develop the annuity business in the long term.
In accordance with the Guidelines on Capital Adequacy Ratio (CAR), the calculation of capital ratio follows the basis of consolidation for financial reporting with the exclusion of regulated subsidiaries which are subject to separate requirements on the maintenance of adequate capital (i.e. the HKMCA and the HKMCI, both being regulated by the Insurance Authority). Excluding the investment cost of such unconsolidated regulated subsidiaries, the HKMC's CAR remained solid at 18.7 per cent as at June 30, 2025 (December 31, 2024: 19.9 per cent), well above the minimum requirement of 8 per cent stipulated by the Financial Secretary.
The solvency ratios of the HKMCA and the HKMCI as at June 30, 2025, calculated in accordance with the Insurance (Valuation and Capital) Rules (Cap. 41R) under the Risk-based Capital regime, were about 2.2 times (December 31, 2024: 1.7 times) and 3.7 times (December 31, 2024: 4 times) respectively, each well above the minimum regulatory requirements stipulated by the Insurance Authority.
Amid uncertain market conditions, the HKMC adopted prudent prefunding strategy and proactively communicated with local and international investment communities for debt issuance to support its sizable loan purchase and fulfil its refinancing needs. With strong financing capability and liquidity position, the HKMC's core operations remain resilient and stand ready to cope with any financial turbulence ahead in performing its strategic policy roles and attaining its social objectives.
Source: AI-found images
Government implements multiple measures to promote smart, green and modern logistics development
The Transport and Logistics Bureau (TLB) announced today (January 16) the implementation of various measures, including the formal rollout of the Port Community System (PCS) and Environmental, Social and Governance (ESG) Data Collection Tools, as well as the release of the findings of the planning study on the development of a modern logistics cluster in Hung Shui Kiu/Ha Tsuen New Development Area (HSK/HT NDA), with a view to promoting the smart, green, sustainable and modern development of Hong Kong's logistics industry through a multipronged approach.
The Secretary of Transport and Logistics, Ms Mable Chan, said, "Our country has long been providing solid backing for Hong Kong's maritime development. The Recommendations for Formulating the 15th Five-Year Plan (FYP) recently promulgated have clearly stated the objective of consolidating and enhancing Hong Kong's status as an international maritime centre. The Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area also mentioned the active implementation of various measures to promote Hong Kong's maritime development. Since the Action Plan on the Modern Logistics Development (the Action Plan) has been promulgated for two years, with the full co-operation of the industry, we have completely implemented all action measures and been leading the Hong Kong logistics industry's transition towards high technology adoption and sustainable growth, thereby enhancing the industry's international competitiveness. We will continue to follow the guidance of the Recommendations for Formulating the 15th FYP, leverage Hong Kong's unique advantages of enjoying strong support of the motherland and being closely connected to the world to maintain our position as the region's leading international logistics hub, thereby better integrating into and serving the overall national development."
The logistics industry is one of the pillar industries of Hong Kong. To promote the sustainable and high-quality development of the industry, the Government promulgated the Action Plan in 2023, which formulated eight strategies and 24 action measures to assist the industry in embracing the new era of smart, green and modern logistics. Apart from a number of subsidy schemes to assist the industry in upgrading their operations by adopting smart and green logistics solutions and taking relevant training courses, as well as release land parcels to meet the industry's demand for premium logistics sites in the short to medium term, the Government is also working at full steam to build the new image of modern logistics as "smart, innovative, high-end" and reach out to young people on campus through the Curriculum on Logistics Industry and internship scheme, among others in order to attract young people to join the industry. Externally, on one hand, we commenced logistics co-operation with Guangxi, Chongqing and Chengdu with a view to exploring new cargo sources for Hong Kong. On the other hand, we enhanced overseas promotions to explore business opportunities together with the industry in Belt and Road countries.
PCS
In terms of smart logistics, the PCS, a critical digital infrastructure developed by the Government with over $200 million in funding, was formally rolled out today. It marks a significant milestone for the digital transformation of Hong Kong's port and logistics development.
The system provides one-stop, round-the-clock, real-time cargo tracking and links up sea, land, and air transport networks, thereby holistically enhancing the transparency, efficiency and interconnectivity of the logistics chain. Apart from its core function of real-time cargo tracking, the system will also offer value-added electronic services such as the "One-Data-Multiple-Declarations" function. By facilitating cargo import and export declarations by the industry, the system will provide one-stop services for local logistics and trading companies, thereby supporting the upgrading of the industry.
At today's PCS rollout ceremony, the TLB also signed a tripartite Memorandum of Understanding with the Logistics and Supply Chain MultiTech R&D Centre and a local logistics start-up company, FUNDel, to accelerate the connection between the PCS and data platforms of the logistics industry, as well as study the utilisation of the trusted cargo flow data on the PCS to help financial institutions assess trade finance applications filed by relevant logistics small and medium-sized enterprises (SMEs), thereby supporting the sustainable development of the logistics industry.
Findings of the planning study on the development of Hung Shui Kiu/Ha Tsuen modern logistics cluster
The findings of the planning study on the development of a modern logistics cluster in the HSK/HT NDA were also announced today. To address the industry's long-term demand for logistics sites, the Government proposed to develop modern logistics clusters in the HSK/HT NDA. The relevant planning study commenced in March 2024 and was completed at the end of 2025.
After conducting a comprehensive consultation with the trade and considering comments from various stakeholders, the study suggests that the logistics cluster should adopt three major development directions, namely be "enterprise-oriented", have a "market-enabling environment" and an "innovative approach to drive industry development". It also suggests measures such as providing tailor-made entry terms for anchor enterprises and increasing the flexibility of development modes, with a view to ensuring the development of the logistics cluster meets the trends and demands of the market.
The TLB plans to invite the industry to submit expressions of interest for the first logistics cluster site this year, and will draw up the relevant land lease terms and development mode after taking into account the intents of the industry to ensure that they keep pace with industry's development needs.
The Study Report has been uploaded to the website of the planning study on the development of a modern logistics cluster in HSK/HT NDA (www.lc-hskht.hk).
ESG Data Collection Tools
ESG is a new international development trend for the logistics trade. Further to the Government's announcement of the Roadmap for ESG Development for Logistics Industry in June 2025 which has outlined a clear way forward for adopting ESG by logistics SMEs, the TLB today further released a set of ESG Data Collection Tools (the Toolkit) tailored for logistics SMEs, with a view to assisting them in taking the first step towards putting ESG into practice.
The Toolkit includes a user-friendly data collection template, a data dictionary and a user manual. It aims to equip SMEs with the ability to collect and record ESG data early and use the collected data to prepare ESG data reports that fulfil international ESG disclosure requirements. In the long run, logistics SMEs may even utilise the data for reviewing and improving their ESG performance, thereby helping to build up Hong Kong logistics industry's sustainability credentials and enhance its competitiveness. Interested companies may register at the ESG Resource Centre on the website of Hong Kong Logistics Development Council (www.logisticshk.gov.hk/en/ESG/ESG_collection.php) to obtain the Toolkit for free.
The TLB will continue to closely liaise and co-operate with the industry, and further consolidate and enhance Hong Kong's status as an international logistics hub through various policies and measures. The Government will also ensure that the logistics industry will maintain its edge in the international market and drive the development of trading and maritime industries at the same time by seizing the enormous opportunities brought by national and regional development, thereby promoting the high-quality development of Hong Kong's economy.
Source: AI-found images
