HONG KONG, May 27, 2026. CSPI Ratings has assigned the global scale long-term issuer credit rating (LTICR) of ‘AA+’ to The Hong Kong Mortgage Corporation Limited (HKMC, the Company), with a stable outlook. HKMC’s rating and outlook are aligned with those of the government of the Hong Kong Special Administrative Region of the People’s Republic of China (the Hong Kong government), the company’s sole ultimate owner. The rating reflects that the government’s willingness to support HKMC is almost certain in the event of financial distress, in light of the company’s strong government ties and critical importance to the government.
HKMC, wholly owned by the Hong Kong government via the Exchange Fund, was incorporated in 1997 as a public company limited by shares under the Companies Ordinance. It is also a domestic public sector entity designated under the Banking (Capital) Rules. The missions of HKMC are to promote stability of the banking sector, wider home ownership, development of the local debt market and development of retirement planning market. Its core businesses include mortgage purchase and securitisation, mortgage insurance programmes and life annuity services.
KEY RATING RATIONALES
Strategic importance to government: HKMC benefits from an almost certain government willingness to provide support in the event of financial distress, given its strong government ties and critical importance to the government. As a public company wholly owned by the Hong Kong government via the Exchange Fund, HKMC operates under a clear public policy mandate to promote stability of the banking sector, wider home ownership, development of the local debt market and development of retirement planning market, all of which are of vital importance to the government. HKMC also has strong ties with the government, all directors are appointed by the government, the financial secretary serves as the Chairman and Executive Director, and the Chief Executive of the Hong Kong Monetary Authority serves as Deputy Chairman and Executive Director. Given the company’s policy-oriented role and strategic importance, we believe it will continue to deliver on its mandates, and government support will be almost certain if needed.
Track record of government support. The government has provided substantial support to HKMC via capital injections and liquidity facilities. In terms of capital injections, the government has provided sustained capital injections, with cumulative capital contributions of HK$19.5 billion from 2021 to 2024 to underpin its policy-focused businesses, strengthen capital adequacy, and enhance overall risk resilience. For liquidity support, the Exchange Fund has arranged a HK$80 billion revolving credit facility as a standby liquidity backstop, safeguarding the company against potential funding pressures.
A stable credit profile of the Hong Kong government. Hong Kong has one of the world’s highest per capita income levels and enjoys solid economic recovery momentum, alongside a notable rebound in real GDP growth. Fiscal conditions continue to improve with robust sustainability, fiscal deficit is gradually narrowing, fiscal reserves remain ample, and public debt stays at a low level. Despite headwinds from geopolitical tensions and a challenging trade environment, Hong Kong maintains an exceptionally strong external position, underpinned by a large current account surplus, a solid international investment position and a large net external creditor status. Its effective institutional framework further underpins economic resilience and fiscal sustainability. We believe that Hong Kong boasts solid economic fundamentals, improving fiscal metrics, resilient external balances and an effective institutional framework. Its stable credit profile will continue to provide a favorable external operating environment for the Company.
RATING OUTLOOK
The rating outlook is stable, which reflects our view that the outlook of Hong Kong’s issuer credit estimate and the Hong Kong government’s willingness to support the Company in the event of financial distress remain unchanged.
We would consider a rating downgrade if 1) substantial evidence shows that the Hong Kong government’s willingness to support the Company weakens; 2) we downgrade our credit estimate of the Hong Kong government.
We would consider a rating upgrade if we upgrade our credit estimate of the Hong Kong government, given that there is no material deterioration in its support willingness.
Note: Ratings mentioned in this press release are unsolicited ratings.
ANALYSTS CONTACT
Primary Analyst
Tingting Qiao
+852 3615 8339
tingting.qiao@cspi-ratings.com
Secondary Analyst
Winnie Guo
+852 3615 8341
Committee Chair
Larissa Wu
+852 3615 8317
MEDIA CONTACT
RATING SERVICE CONTACT
Date of Relevant Rating Committee: 22 May 2026
Additional information is available on www.cspi-ratings.com
Related Criteria
Government-Related Entities Rating Criteria (31 August 2018)
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