Hong Kong’s Underwater Mortgages Hit 22-Year High on Weak Market

The value of mortgages in Hong Kong that have exceeded the worth of the homes jumped to the highest level in more than two decades as the city’s property market continues to struggle.

The value of negative-equity loans reached HK$207.5 billion ($27 billion) at end-September, up from HK$155 billion in June, according to the Hong Kong Monetary Authority. That’s the highest since at least 2002, according to data compiled by Bloomberg.

The number of such loans — also called “underwater” because the outstanding loan amount is bigger than the current market value of the mortgaged property — rose 34% ...