Residential mortgage loans in negative equity: End of March 2026
The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Monetary Authority announced today (April 30) the results of its survey on residential mortgage loans (RMLs) in negative equity at end-March 2026.
The Hong Kong Monetary Authority, Photo source: reference image
The estimated number of RMLs in negative equity was 11 424 cases at end-March 2026, down by 46.4 per cent from 21 304 cases at end-December 2025. These cases were mainly related to bank staff housing loans or RMLs under mortgage insurance programme, which generally have a higher loan-to-value ratio.
The aggregate value of RMLs in negative equity decreased by 47.8per cent to HK$55 billion at end-March 2026, compared with HK$105.4 billion at end-December 2025.
The unsecured portion of these loans decreased to HK$2.8 billion at end-March 2026 from HK$6.2 billion at end-December 2025.
The three-month delinquency ratio of RMLs in negative equity remained at a low level of 0.5per cent at end-March 2026, as compared to 0.31per cent at end-December 2025.
It is important to note that the figures derived from this survey relate only to RMLs provided by authorized institutions on the basis of first mortgages and which the reporting institution knows to be in negative equity (i.e. the outstanding loan amount with the reporting institution exceeds the current market value of the mortgaged property). Not included in these figures are RMLs associated with co-financing schemes which would be in negative equity if the second mortgages were taken into account. The extent to which such RMLs are in negative equity is not known because authorized institutions do not maintain records on the outstanding balances of the second mortgages.
The mortgage portfolios of the surveyed authorized institutions represent about 99per cent of the industry total. The survey results have been extrapolated to estimate the position of the banking sector as a whole.
Photo source: reference image
Three incoming passengers convicted and jailed for importing duty-not-paid cigarettes and importing alternative smoking products
Three incoming passengers were sentenced to between three to six months' imprisonment and fined $1,000 by the West Kowloon Magistrates' Courts yesterday (May 4) and today (May 5) for importing duty-not-paid cigarettes and failing to declare them to Customs officers, as well as for importing alternative smoking products, in contravention of the Dutiable Commodities Ordinance (DCO) and the Import and Export Ordinance (IEO).
Customs officers intercepted two incoming male passengers, aged 34 and 38, at Hong Kong International Airport (HKIA) on May 1 and seized around 37 000 duty-not-paid cigarettes, with a market value of about $188,000 and a duty potential of about $124,000, as well as around 85 000 alternative smoking products, with a market value of about $229,000, from their personal baggage. The two passengers were subsequently arrested. They were each sentenced to six months' imprisonment and fined $1,000 yesterday.
In addition, Customs officers intercepted an incoming male passenger, aged 24, at HKIA yesterday. Customs officers seized about 30 000 duty-not-paid cigarettes from his personal baggage, with an estimated market value of about $121,000 and a duty potential of about $98,000. The passenger was subsequently arrested. He was sentenced to three months' imprisonment and fined $1,000 today.
Customs welcomes the sentences. The custodial sentences have imposed a considerable deterrent effect and reflect the seriousness of the offences.
Customs reminds members of the public that under the DCO, cigarettes are dutiable goods to which the DCO applies. Any person who imports, deals with, possesses, sells or buys illicit cigarettes commits an offence. The maximum penalty upon conviction is a fine of $2 million and imprisonment for seven years.
Under the IEO, any person who imports an alternative smoking product into Hong Kong commits an offence. The maximum penalty upon conviction is a fine of $2 million and imprisonment for seven years.
Members of the public may report any suspected illicit cigarette activities to Customs' 24-hour hotline 182 8080 or its dedicated crime-reporting email account (crimereport@customs.gov.hk) or online form (eform.cefs.gov.hk/form/ced002).
Three incoming passengers convicted and jailed for importing duty-not-paid cigarettes and importing alternative smoking products Source: HKSAR Government Press Releases
Three incoming passengers convicted and jailed for importing duty-not-paid cigarettes and importing alternative smoking products Source: HKSAR Government Press Releases
Three incoming passengers convicted and jailed for importing duty-not-paid cigarettes and importing alternative smoking products Source: HKSAR Government Press Releases
