HSBC is being probed by Hong Kong regulators over whether it manipulated the rates at which banks lend to each other in the island’s financial markets, writes Paul J Davies.

The Hong Kong Monetary Authority – the de facto central bank and industry regulator in the Chinese city – has been investigating a number of institutions, but named HSBC after the UK-listed lender was listed among 20 banks being disciplined for alleged rate rigging in Singapore.

The HKMA launched its probe last December into Hibor, the local interbank borrowing rate, which is used as a basis for mortgage and other lending rates in the city. UBS was the main focus at the start of the probe, sparked by information from regulators in Japan, the US and UK about the Swiss bank’s role in manipulating Libor, the larger benchmark used for contracts worth $300tn worldwide.