In July 2001, the Interest Rate Agreement (IRA) between banks in HK was abolished, and the PRC successfully entered to WTO in December 2001, but HKD is still pegged to the USD, ...

Since then, the effects of the abolishment of the IRA gradually came out, the interest rates on all deposits were totally deregulated, and the fierce competition between banks in HK has resulted in lowering the interest rates for lending... Who are victims of the abolishment of the IRA ??? The reduction in mortgage rates has resulted in demand for more properties for individual needs/purposes ! Everyone can get cheaper money ! Stricly speaking, we may consider this deregulation as another government intervention in market without any emergency aids !

Within the same period, we noted the M2 supply in mainland has largely increased over RMB85 trillion dollars since China's entry to the WTO, these figures are shown above the ground level ( excluding the side effects of non-stop printing notes from advanced countries & money underground ), but the HKMA just keeps saying " Be Cautious " without any currency plans

Over the past 15 years, we have been living on around 1100 sq.km of a little land area facing excessive liguidity, but the population approximately increased 1 million...That could be a picture providing an expectation about all the global money hunting for HK...See the Japanese currrency is now trading around 96 yen per USD...

If we think the current price for a flat is high/expensive, it means we have financial inadequacy ! As the property investors /businessmen, we should adjust the rent to be paid by the existing tenants in order to cover the increase in the lending rate. For the first time buyers, they can apply a long-term /fixed-rated mortgage, if available.