TUESDAY, AUGUST 24, 1993
"IF WE LOOK AT THE AVERAGE RATE OF GROWTH OVER THE LATEST THREE MONTHS AND CONVERT THIS TO AN ANNUAL RATE OF GROWTH, IT CAN BE SEEN THAT THE RATE OF GROWTH HAS NOW RISEN TO 30.2 PER CENT PER ANNUM, COMPARED WITH 25.3 PER CENT PER ANNUM IN THE THREE-MONTH PERIOD TO JUNE.
"AGAIN, THIS IS THE HIGHEST GROWTH RATE SINCE THE END OF 1991, MR CARSE ADDED.
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HE FURTHER NOTED THAT NEW LOANS APPROVED BUT NOT YET DRAWN ALSO GREW AT A FASTER PACE IN JULY IN TERMS OF BOTH NUMBERS AND AMOUNT.
"THIS SUGGESTS THAT THE GROWTH OF OUTSTANDING LENDING WILL CONTINUE TO BE RAPID IN AUGUST, HE SAID.
THE RESULTS OF THE JULY SURVEY HAVE, AS USUAL, BEEN PASSED TO THE BANKING SECTOR IN A LETTER TO THE INDUSTRY ASSOCIATIONS BY CARSE.
ON
MR
IN HIS LETTER, MR CARSE HAS ADVISED THAT, IN THE LIGHT OF THE JULY FIGURES AND THE LATEST STATISTICS FOR PROPERTY PRICES AND. TRANSACTIONS IN JULY, INSTITUTIONS SHOULD REVIEW AND,
IF NECESSARY, TIGHTEN THEIR LENDING CRITERIA TO AVOID EXCESSIVE GROWTH IN THEIR MORTGAGE PORTFOLIOS.
"THE HKMA HAS NOT ADVOCATED A REDUCTION IN THE OVERALL 70 PER CENT LOAN TO VALUE RATIO.
"HOWEVER THIS DOES NOT PREVENT INDIVIDUAL
·
INSTITUTIONS FROM TAKING THE VIEW THAT LOWER RATIOS WOULD BE APPROPRIATE FOR LOANS IN RESPECT OF PARTICULAR TYPES OF PROPERTY MR CARSE SAID.
THE
"
MONTHLY SURVEY ALSO COVERS LENDING FOR THE PURCHASE OF PROPERTIES IN CHINA. THE LATEST FIGURES SHOW THAT SUCH LENDING ROSE BY 3.7 PER CENT IN JULY, MAINLY DUE TO LOANS FOR THE PURCHASE OF RESIDENTIAL PROPERTY.
THE TOTAL AMOUNT OF OUTSTANDING LENDING REMAINS RELATIVELY LOW AT $3 BILLION.
NEW LOAN APPROVALS FELL SHARPLY IN JULY, FROM $231 MILLION то $136 MILLION.
*THIS IS
CONSISTENT WITH THE ADVICE OF THE HKMA THAT A CONSERVATIVE APPROACH TOWARDS PROPERTY LENDING IN CHINA IS APPROPRIATE IN THE LIGHT OF THE CURRENT FINANCIAL SITUATION THERE, MR NOTED.
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