Hong Kong's taxi trade warns of potential defaults on vehicle mortgages as license values plummet, with many drivers transitioning to new ride-hailing services. The market value of taxi licenses has significantly decreased over the past two decades.

Hong Kong’s taxi trade has warned that 10 per cent of the cab owners in the city could soon default on vehicle mortgages as licence values plunge, with many drivers switching to the new ride-hailing regime where 10,000 permits will be issued. The market value of a taxi licence has plunged over the past two decades, from a historic high of HK$7.66 million (US$970,163) in 2009 to HK$2.62 million for urban or red cabs and HK$1.45 million for green or New Territories taxis as of May this year,...