Bank of China Hong Kong (Holdings) Ltd. said Monday it would cut its prime lending rate to 5 percent from 5.125 percent, following similar moves by other major banks last week.

The company also said it would't rim its standard savings rate for Hong Kong dollars to 0.01 percent from 0.125 percent, which also matched other banks�� recent cuts.

Both changes took effect Tuesday, the bank said in a statement.

The lender, a Hong Kong unit of State-owned Bank of China, had been the last Hong Kong major bank to hold its prime rate at 5.125 percent.

Hong Kong��s largest bank HSBC Holdings Plc., its unit Hang Seng Bank Ltd.

and Standard Chartered Bank Plc. cut rates late last week despite a rate increase by the U.S. Federal Reserve. Bank of China Hong Kong and some other banks initially held rates steady, but soon began to follow the moves.

Analysts said that given the tough competition among Hong Kong banks for new loans, Bank of China Hong Kong would be at a disadvantage if its prime rate was higher than other institutions.

Source: Shenzhen Daily/Agencies