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(V) Some collective effort on the part of market participants in reducing the heterogeneity in the structure of MBS and the underwriting standards is desirable.
Private sector members of the Informal Group consider that the setting up of a government-supported mortgage corporation operating on prudent and profit-oriented principles will contribute to the development of the secondary mortgage market in Hong Kong. The Government will study the views expressed in the Group.
In deciding whether or not the mortgage corporation proposal should be supported, the Government would need to take account of wider issues, including the financial implications, the contribution of the corporation to the stability of the banking system and the development of the debt market, as well as the impact on the property market.
The Informal Group on the Secondary Mortgage Market was set up by the HKMA in February last year. It included representatives of financial institutions which are active participants in the market.
The Report summarises the study carried out by the Informal Group on: (a) different forms of mortgage securitisation; (b) various issues affecting market development including asset quality, liquidity and legal issues; as well as (c) the implications of the development of the secondary mortgage market for the banking system, the debt market, and the property sector. The Report also includes a discussion of the regulatory treatment of mortgage-backed securities.
End/Friday, July 7, 1995
Vigilance for sharks to remain as summer holidays approach
Members of the public should not swim at beaches in Sai Kung District where shark warning signals are still in force, the Chairman of the Government's Inter- departmental Working Group on Shark Attacks, Mr Ian Petersen. said today (Friday).
Mr Petersen, who is also the acting Deputy Secretary for Recreation and Culture, made the call after a shark sighting near Clear Water Bay First Beach was reported by the Government Flying Service during its routine surveillance duty early this morning.