Mumbai, May 6 -- The International Monetary Fund or IMF stated in a latest update that Hong Kong SAR's corporate sector vulnerabilities appear manageable but have increased in recent years. Local non-real estate firms have seen weakening profitability and lower debt-servicing capacity, reflecting pandemic scarring effects and higher funding costs driven by the hiking cycle of US monetary policy. While, on aggregate, their leverage level and liquidity appear manageable, there is high heterogeneity across firms, with smaller listed firms appear to be more vulnerable. As for the local real estate firms, they are exposed to changes in property prices given their sizeable holding of investment properties and inventory. However, their relatively ...