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HONG KONGLONDON Oct 30 Reuters The worst may be over for China39;s shaky commercial real estate market, HSBC said on Monday, as a further 500 million charge from the sector helped drag third quarter profits at Europe39;s biggest bank below market forecasts.

While HSBC announced a new 3 billion share buyback and said profits for JulySeptember more than doubled amid higher interest rates, its shares reacted with a shrug as investors took in the China impairment and increased cost forecasts.

I do think the major correction in China39;s property market is over and it39;s now a case of a progressive work over an extended period of time, HSBC Chief Executive Noel Quinn told reporters.

Fears about the debtladen sector have weighed on foreign banks that lend to developers in China, especially after rival Standard Chartered reported an unexpected plunge in profit due to a nearly 1 billion hit from real estate and banking.

All eyes are on China39;s embattled property giant Evergrande Group which has more than 300 billion of liabilities after it defaulted on its offshore debt in late 2021.

Hong Kong39;s High Court said on Monday the next hearing on Dec. 4 would be the last before a decision is made on liquidating the company.

HSBC finance chief Georges Elhedery said the bank still expected a couple of quarters…