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Could Hong Kong survive a property market collapse?

Property prices in Hong Kong have risen to record highs on the back of accommodative monetarypolicy in the US and strong demand from mainland China. With the Federal Reserve set to tightenpolicy this year and growth likely to slow further in the mainland, there are rising concerns about apossible collapse in house prices. While the economy would be weakened if this happened, we wouldnot expect to see a severe and protracted economic downturn.

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