XN000022-1993-09-21 — Page 13

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TUESDAY, SEPTEMBER 21, 1993

RESIDENTIAL MORTGAGE SURVEY RESULTS FOR AUGUST

RESIDENTIAL MORTGAGE LENDING IN HONG KONG CONTINUED RAPIDLY IN AUGUST BUT THE RATE OF GROWTH 15 EXPECTED ΤΟ SEPTEMBER, ACCORDING TO RESULTS OF THE LATEST MONTHLY SURVEY HONG KONG MONETARY AUTHORITY (HKMA).

TO RISE

SLOW IN OF THE

THE LATEST FIGURES SHOWED THAT THE TOTAL AMOUNT OF OUTSTANDING LENDING BY THE 28 AUTHORISED INSTITUTIONS IN THE SURVEY ROSE BY 2.5 PER CENT IN AUGUST (2.6 PER CENT IN JULY) FROM $193.7 BILLION ΤΟ $198.4 BILLION.

"THE LATEST INCREASE IS WELL ABOVE THE MONTHLY AVERAGE OF 1.3% PER CENT FOR THE PAST 12 MONTHS, THE ACTING CHIEF EXECUTIVE OF THE HKMA, MR DAVID CARSE, SAID TODAY (TUESDAY).

THE ANNUALISED RATE OF GROWTH IN LENDING OVER THE LAST THREE MONTHS HAS RISEN TO 34 PER CENT, COMPARED WITH 30.2 PER CENT

IN THE THREE-MONTH PERIOD TO JULY 1993.

"THIS IS THE HIGHEST GROWTH RATE SINCE THE END OF CARSE ADDED.

** 1991, MR

DESPITE THE RAPID GROWTH IN AUGUST, THERE ARE SIGNS THAT PROPERTY MARKET IS COOLING OFF.

THE

BY

THIS REFLECTS THE FURTHER TIGHTENING MEASURES INTRODUCED CERTAIN BANKS TOWARDS THE END OF AUGUST AND DETERIORATING AFFORDABILITY FOLLOWING THE RECENT STEEP RISE IN PRICES.

"JUDGING FROM THE AMOUNT OF NEW LOANS APPROVED BUT NOT YET DRAWN, WHICH FELL SHARPLY IN AUGUST FROM $6.8 BILLION TO $4.3 BILLION, I EXPECT TO SEE A SLOWER GROWTH IN PROPERTY LENDING NEXT MONTH, MR CARSE SAID.

ri

WHILE WELCOMING THIS DEVELOPMENT, MR CARSE HAS ADVISED INSTITUTIONS THAT THEY SHOULD NOT SEE IT AS A SIGNAL TO RELAX THEIR LENDING POLICIES.

AS REGARDS LENDING FOR THE PURCHASE OF PROPERTIES IN CHINA, THE LATEST FIGURES SHOWED THAT SUCH LENDING ROSE BY 2. 3 PER CENT IN AUGUST. THIS WAS ENTIRELY DUE TO LOANS FOR THE PURCHASE OF RESIDENTIAL PROPERTY.

THE TOTAL AMOUNT OF OUTSTANDING LENDING REMAINED LOW AT $3.1 BILLION, OR 0.1 PER CENT OF TOTAL LOANS OF THE INDUSTRY.

REVERSING THE TREND IN JULY, THE AMOUNT OF NEW LOAN APPROVALS ROSE SHARPLY IN AUGUST, FROM $136 MILLION TO $270 MILLION.

"IN THE LIGHT OF THE CURRENT FINANCIAL SITUATION IN CHINA, THIS IS A SOMEWHAT SURPRISING DEVELOPMENT,' MR CARSE SAID.

to

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