Hong Kong Developers Confront 70% Jump in 2026 Bond Maturities

Hong Kong’s highly leveraged property developers face mounting refinancing pressure as dollar-denominated bond maturities are projected to surge nearly 70 % to about US$7.1 billion next year, according to LSEG data compiled by Reuters. The increase follows a sharp decline in commercial and retail asset prices—now more than 50 % below their 2019 peaks—that has curtailed developers’ ability to raise cash through disposals. The strain is already producing defaults: Road King last week became the first Hong Kong-based developer to miss a bond coupon since the wider Chinese property crisis erupted in 2021, while Emperor International suffered a loan default earlier this year. Analysts warn that more mid-sized companies could follow as lenders cut exposure. New World Development, carrying roughly HK$180 billion (US$23 billion) in borrowings, faces US$168 million of notes maturing next year and another US$630 million in 2027, and Lai Sun Development has US$524 million falling due in 2026. Rising credit stress is rippling through the banking sector. Hang Seng Bank booked a HK$2.5 billion impairment charge on Hong Kong commercial real-estate loans in the first half—an increase of 224 % from a year earlier—while parent HSBC said loans classified as having significant credit risk in the segment tripled to US$18.1 billion by end-June. Even so, Hong Kong Monetary Authority chief Eddie Yue said lenders remain "well-capitalised" and have adequate provisions to absorb volatility. Liquidity conditions are tightening further as repeated Hong Kong Monetary Authority interventions to defend the currency peg have pushed up interbank rates, raising funding costs for both developers and banks. Market observers note some lenders are refraining from calling in distressed loans or seizing collateral in hopes of avoiding fire-sales that could deepen the downturn.