XN000022-1994-01-24 — Page 4

MONDAY, JANUARY 24, 1994

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RESIDENTIAL MORTGAGE LENDING RISES IN DECEMBER

IN

0.5% IN $202.7

THE

BY OF RESIDENTIAL MORTGAGE LENDING ROSE THE AMOUNT DECEMBER 1993 (0.8%

NOVEMBER) FROM

ΤΟ $201.7 BILLION BILLION, ACCORDING TO THE RESULTS OF THE LATEST MONTHLY SURVEY OF HONG KONG MONETARY AUTHORITY (HKMA).

THIS IS BELOW THE AVERAGE MONTHLY GROWTH OF 1.2% OVER THE 12 MONTHS.

LAST

MOVING THREE-MONTH

THE

AVERAGE OF OUTSTANDING FALLEN TO 5.3% (ANNUALISED), COMPARED WITH 6.8% IN PERIOD TO NOVEMBER 1993.

LENDING HAS

THE THREE-MONTH

AS 1993).

THE CURRENT GROWTH RATE IS THUS WELL BELOW THE LONG-TERM

BY

AT THE 12-MONTH MOVING AVERAGE (14.7% MEASURED

TREND

AS

DECEMBER

GROWTH.

"THE SURVEY RESULTS SOMEWHAT UNDERSTATE THE CURRENT

THIS IS BECAUSE MORTGAGE LENDING BY CERTAIN OUTSIDE THE

SURVEY GROUP OF 28 INSTITUTIONS HAS BEEN RAPIDLY.

RATE OF

INSTITUTIONS

GROWING

QUITE

"EVEN

$0,

IN

MORTGAGE REFLECTING LENDING DAVID

IS CLEAR THAT THE OVERALL IT

GROWTH

LENDING REMAINED QUITE MODEST IN

PROBABLY DECEMBER, FACTORS SEASONAL

AS

BANKS' WELL AS THE

GENERALLY TIGHT POLICIES, THE DEPUTY CHIEF EXECUTIVE (BANKING) OF THE HKMA, MR CARSE, SAID.

||

YET DRAWN SLOWER

"THE LATEST FIGURES FOR NEW LOANS APPROVED BUT NOT SUGGEST THAT THE INCREASE IN JANUARY WILL BE IN LINE WITH THE GROWTH RATES OF RECENT MONTHS.

"

"THE ABOVE RESULTS WOULD SUGGEST THAT AN ACROSS-THE-BOARD FOR AT TIGHTENING OF BANKS' MORTGAGE LENDING POLICIES IS NOT CALLED THIS STAGE.

THAN

"NONETHELESS, SOME BANKS' LENDING IS GROWING AT A FASTER AVERAGE PACE AND THERE CONTINUE TO BE SIGNS OF OVERHEATING IN CERTAIN EXPENSIVE PROPERTIES SECTORS OF THE MARKET, IN PARTICULAR THE MORE WHERE DEMAND IS LESS AFFECTED BY THE BANKS' CURRENT LENDING CRITERIA," MR CARSE CAUTIONED.

"INDIVIDUAL

SHOULD BANKS

THEREFORE CONTINUE

ΤΟ KEEP THEIR LENDING STANCE UNDER CLOSE REVIEW IN THE LIGHT OF THEIR OWN PARTICULAR CIRCUMSTANCES, INCLUDING THEIR TOTAL EXPOSURE TO ALL TYPES OF PROPERTY LENDING.

THE AS REGARDS LENDING FOR THE PURCHASE OF PROPERTIES IN CHINA, LATEST FIGURES SHOW THAT SUCH LENDING ROSE BY 6.8% IN DECEMBER 1993 TO $3.6 BILLION. ABOUT THREE QUARTERS OF THE INCREASE WAS ACCOUNTED BY LOANS FOR THE PURCHASE OF RESIDENTIAL PROPERTIES.

LOANS GROSS

FOR

BOTH INCREASE

IN MADE IN DECEMBER CONTINUED TO

FROM $204 NUMBERS {TO 591 FROM 425) AND IN AMOUNT (TO $277 MILLION MILLION); BUT NEW LOANS APPROVED (DRAWN AND UNDRAWN) KUMBERS (TO 348 FROM 408) AND IN VALUE (TO $167 MILLION).

FELL BOTH IN MILLION FROM $184

0

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