XN000022-1994-07-20 — Page 8

WEDNESDAY, JULY 20, 1994

STATEMENT ON OLD AGE PENSION SCHEME

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IN REPLY TO ENQUIRIES ON THE PROPOSAL ANNOUNCED BY THE HONG KONG GENERAL CHAMBER OF COMMERCE THAT THE GOVERNMENT SHOULD FUND AN ENHANCED OLD AGE ALLOWANCE INSTEAD OF AN OLD AGE PENSION SCHEME, ACTING SECRETARY FOR EDUCATION AND MANPOWER, MR W K LAM, TODAY (WEDNESDAY) THE OPTION WAS IMPRACTICABLE.

THE

SAID

COSTS FOR

THE

"IT WOULD INVOLVE SUBSTANTIAL ADDITIONAL TAX PAYERS, AND OUR INITIAL ESTIMATE TS THAT IT WOULD REQUIRE AN INCREASE OF TWO TO THREE PERCENTAGE POINTS IN BOTH SALARIES TAX AND PROFITS TAX.

"IT WOULD ALSO BE IMPOSSIBLE ΤΟ FUND SUCH A SUBSTANTIAL LONG-TERM FINANCIAL COMMITMENT THROUGH SURPLUSES," HE ADDED.

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RESIDENTIAL MORTGAGE SURVEY RESULTS FOR JUNE

THE

GROWTH OF RESIDENTIAL MORTGAGE LOANS FOR THE PURCHASE OF PROPERTIES IN HONG KONG HAS SLOWED DOWN IN JUNE, ACCORDING TO THE RESULTS OF THE LATEST MONTHLY SURVEY OF THE HONG KONG MONETARY AUTHORITY (HKMA).

THE LATEST FIGURES SHOWED THAT THE TOTAL AMOUNT OF OUTSTANDING MORTGAGE LENDING BY THE 33 INSTITUTIONS IN THE SURVEY GREW BY 1.40 PER CENT IN JUNE FROM $235.0 BILLION TO $238.2 BILLION. THIS COMPARES WITH THE 1.75 PER CENT GROWTH IN MAY.

OVER THE PREVIOUS 12 MONTHS, THE AVERAGE MONTHLY GROWTH HAD BEEN 1.5 PER CENT.

REFLECTING THE HIGHER GROWTHS IN APRIL AND MAY, THE ANNUALISED RATE OF GROWTH IN LENDING OVER THE LAST THREE MONTHS HAS RISEN TO 21.4 PER CENT FROM 21.1 PER CENT IN THE THREE-MONTH PERIOD то MAY. HOWEVER, THE 12 MONTH AVERAGE GROWTH HAS SLOWED ΤΟ AN ANNUALISED RATE OF 17.0 PER CENT, COMPARED WITH 17.9 PER CENT IN MAY.

NEW LOANS APPROVED BUT NOT YET DRAWN HAS FALLEN SHARPLY IN JUNE FROM $5.0 BILLION TO $3.6 BILLION.

"WE ARE PLEASED WITH THE JUNE FIGURES, THE EXECUTIVE DIRECTOR ( BANKING SUPERVISION) OF THE HKMA, MR ALBERT CHEOK, SAID TODAY (WEDNESDAY).

"IT PROVIDES TANGIBLE PROOF THAT GOVERNMENT MEASURES AND CO- OPERATIVE EFFORTS OF BANKS HAVE SUCCEEDED IN TAKING THE SPECULATIVE HEAT OFF THE PROPERTY MARKET.

"HOWEVER, IT