HSBC raises HK mortgage rates by up to 75 bps

HONG KONG, Dec 2 (Reuters) - Global lender HSBC Holdings (0005.HK) has raised its Hong Kong mortgage rates by up to 75 basis points with effect from Dec. 1, to address concerns over higher lending risks as the credit crisis deepens.

A spokeswoman from HSBC confirmed on Tuesday it had increased mortgage rates by between 50 and 75 basis points, equivalent to an interest rate of 3.5 and 4 percent.

The increase was the biggest by the bank in a decade, the South China Morning Post reported on Tuesday.

HSBC had tracked other local banks' moves to raise mortgage rates, the spokeswoman said, declining to comment further.

Shares of HSBC had dropped 5.8 percent to HK$79.55 by the midsession on Tuesday.

Blue-chip Hang Seng property stocks fell, with the properties sub-index .HSNP falling 6 percent, lagging a 4.9 percent drop on the broader Hang Seng Index .HSI. (Reporting by Donny Kwok; Editing by Anne Marie Roantree)