The mortgage war between Hong Kong's banks is deepening, with combative measures taken by three main lenders. Hang Seng, Standard Chartered and BEA are attempting to keep the shares in market and make their quota for mortgage according to their respective goals.

Hang Seng which said it didn't exclude to decrease the mortgage rate unconsciously cut its first-two-year actual mortgage rate to 5.12 p.c; Standard Chartered regulated it equal to the level of 5.25 p.c of HSBC and BOC(HK); BEA, the most active competitor, said its first-three-year rate may be as low as under 5 p.c.

For the trend, Sources in banking sector say they are actively seeking medium to small sized private enterprises for loans in order to make up of the cut in mortgage business.

After HSBC took measures to retort BOC's move July, the local banks fetched their active mortgage programs to avoid their shares in market picked up by the two largest rivals. BEA launched its most favorable rate in first-three-year (P) reduced 3.28 p.c following its mortgage plan started, which enhanced 0.5 p.c for three-year HIBOR.

In the face of the rivals' threatening measures, Hang Seng provided the lower price for its consumers; bank's vice-director and CEO Mr Ke also unveiled they might continue to cut rate to remain the competitive in the mortgage business.

Standard Chartered also adjusted its mortgage rate based on P value down to P-3 p.c.

Investment HANG SENG INDEX HSBC Mortgage