hibor
The price of Hong Kong dollars between banks, set less by the central bank than by how much spare cash the peg leaves in the system.
concept note · live rateswhat it is
HIBOR, the Hong Kong Interbank Offered Rate, is what banks say they'd charge to lend Hong Kong dollars to each other without collateral, for periods from overnight to twelve months. Panel banks submit quotes each morning, the highest and lowest are thrown out, and the rest are averaged.
So HIBOR is built the other way from SOFR. It's unsecured, it's a term rate (you know the one-month rate on day one), and it comes from quotes rather than transactions. Hong Kong also has a SOFR-style overnight rate, HONIA, but HIBOR was kept alongside it, and it's still what most HKD loans, mortgages and equity financing are quoted against.
the hibor curve, by tenor
Fixings as of 31 aug 2026. Longer tenors usually cost more because the lender is locked in for longer and carries more uncertainty.
| Tenor | Rate | What it's used for |
|---|---|---|
| overnight | 4.099% | bank liquidity management; jumps at month-end |
| 1 week | 3.230% | short-term interbank lending |
| 1 month | 2.850% | most HK mortgages; monthly-reset equity swaps |
| 3 months | 3.020% | corporate loans; quarterly-reset swaps |
| 6 months | 3.227% | longer loans, deposit pricing |
| 12 months | 3.515% | a read on where the market thinks rates are heading |
Source: Hong Kong Monetary Authority. The by-tenor dataset is published with a lag of about two weeks.
why hibor behaves differently: the peg
The Hong Kong dollar is pegged to the US dollar in a band of 7.75 to 7.85. The HKMA doesn't set HIBOR. It defends the band, and HIBOR is the side effect.
At 7.85 (the weak side), people are selling HKD. The HKMA buys that HKD with its USD reserves, which takes HKD out of the banking system. The aggregate balance, the pool of spare HKD banks keep at the HKMA, shrinks. Less spare cash means banks charge more to lend it, so HIBOR rises.
At 7.75 (the strong side), everything runs in reverse: the HKMA sells HKD, the aggregate balance swells, and HIBOR falls.
Picture the aggregate balance as the water level in a tank, and HIBOR as how thirsty the banks drinking from it are. When the tank is nearly empty, every cup is expensive: high HIBOR. When it's overflowing, water is almost free: low HIBOR.
The HKMA doesn't touch the tap directly. It has two valves, one at 7.75 and one at 7.85, that open automatically when the exchange rate reaches them. That's why HIBOR can sit far from SOFR for weeks, then snap back once a valve opens.
hibor, one and three months
Three years, daily.
how to read it: the collapse in mid-2025 is the tank overflowing. After the HKD hit the strong side in May 2025, the HKMA sold HKD, the aggregate balance jumped roughly fourfold, and one-month HIBOR fell below 1%. Once the HKD drifted back to the weak side and the HKMA bought HKD back, the balance drained and HIBOR climbed back up.
Source: Hong Kong Monetary Authority, daily HIBOR fixings.
the aggregate balance: the tank's water level
HK$ billions, closing balance.
how to read it: put this next to the HIBOR chart above: they move in opposite directions. When the balance spikes, HIBOR collapses; when it drains, HIBOR recovers.
Source: Hong Kong Monetary Authority, daily interbank liquidity.
why this matters for a hong kong stock position
A long position in HK stocks financed in HKD pays HIBOR + spread. Because HIBOR is driven by liquidity as well as the Fed, the cost of carrying the same position can swing a lot within a year without any change in US rates.
Seasonal squeezes are worth knowing. Big IPOs lock up HKD in subscription money, mid-year dividend payments send money out, and quarter- and half-year-ends make banks hoard cash. Short-tenor HIBOR (overnight, 1 week) often jumps around these dates even when nothing else has changed.
Note the day count too: HKD money markets use ACT/365, not the ACT/360 used for USD. At the same quoted rate, a year of HKD interest costs slightly less than a year of USD interest.
- HIBOR = what banks say they'd charge to lend HKD to each other unsecured, from overnight to 12 months.
- The HKMA doesn't target it. It defends 7.75–7.85, and HIBOR moves as a side effect.
- Weak side (7.85) → the aggregate balance shrinks → HIBOR rises. Strong side (7.75) → the reverse.
- HKD equity financing = HIBOR + spread, on ACT/365.