Hong Kong's property market may benefit from the recent prime lending rate cut by local banks, Sino Land Chairman Robert Ng said yesterday after the company's annual general meeting.

Ng also said that the local prime rate will be slashed further, as the interbank rates in the US and UK have been falling. He also expects the three-month Hong Kong interbank rate to slide to 2 percent or even lower.

"If the interbank rate further declines, banks will have more room for a rate cut, which will be a positive sign for the property market as well as different industries in Hong Kong," Ng said. He also added that the rate reduction will encourage people to buy flats, especially amid the financial turmoil, during which property seems to be a more actual asset.

"As a responsible property developer, Sino Land will help end-users apply for a second mortgage," said Ng, who also noted that the company has not yet decided on the second-mortgage rate. He, however, promised the rate will follow the recent market value.

Asked if the property developers will cut their rents to help the retail industry, Ng said the companies will try their best to give necessary assistance to their customers.

Ng expressed confidence that Hong Kong will recover from the impact of the global financial crisis, with firm support from the central government.

"Though the economy in Hong Kong is partly influenced by external financial situations, I believe Hong Kong people are hard working enough, and also coordinating with the government's measures so that the local economy could be revitalized soon," Ng said.

Ng also added that the 4-trillion yuan stimulus package from the central government will spur economic growth both for Hong Kong and the mainland.

While Ng declined to say whether the property market has reached its bottom, he believed many financial institutes and banks are facing some credit problems, which will take time for them to overcome. "If the confidence is back, the property market will also turn better," Ng said.

Sino Land has previously bought back some of its stakes when the share price dropped, executive director and chief financial officer Thomas Tang said, adding that the company may consider buying back some more stakes in the near future.

"During the annual general meeting, the board of directors has been authorized to buy back more of our company's shares when the price is reasonable," Tang said.

Shares of Sino Land ended at HK$6.04, down 5.33 percent yesterday.

(HK Edition 11/14/2008 page2)