Hong Kong CRE drives rise in HSBC stage 2 loans
Model updates and HK real estate behind $24bn jump in H1
HSBC’s gross stage 2 loans surged by $24 billion in the first six months of 2025, driven by updates to its probability-of-default models and worsening conditions in Hong Kong commercial real estate (CRE).
Stage 2 balances – exposures that have seen a significant increase in credit risk since origination – rose to $141.8 billion, up 13.9% over the second quarter and 20.3% over the first half of the
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