XN000022-1994-08-23 — Page 4

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TUESDAY, AUGUST 23, 1994

RESIDENTIAL MORTGAGE SURVEY RESULTS FOR JULY 1994

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OF

TO

THE GROWTH OF RESIDENTIAL MORTGAGE LOANS FOR THE PURCHASE PROPERTIES IN HONG KONG CONTINUED TO DECELERATE IN JULY, ACCORDING THE LATEST MONTHLY SURVEY CONDUCTED BY THE HONG KONG MONETARY AUTHORITY (HKMA).

THE LATEST FIGURES SHOW THAT THE TOTAL AMOUNT OF OUTSTANDING MORTGAGE LENDING BY THE 33 INSTITUTIONS IN THE SURVEY GREW BY 0.4 PER CENT IN JULY TO $238.3 BILLION.

THE PERCENTAGE CHANGE HAS BEEN ADJUSTED ΤΟ ALLOW FOR THE RECLASSIFICATION AND SECURITISATION OF LOANS BY SOME INSTITUTIONS. THE GROWTH IN JUNE WAS 1.4 PER CENT.

OVER THE PREVIOUS 12 MONTHS, THE AVERAGE MONTHLY GROWTH HAD BEEN 1.24 PER CENT.

REFLECTING THE MODEST GROWTH IN JULY, THE ANNUALISED GROWTH IN LENDING OVER THE LAST THREE MONTHS HAS FALLEN TO CENT FROM 21.4 PER CENT IN THE THREE-MONTH PERIOD TO JUNE.

THE 12-MONTH AVERAGE GROWTH HAS ALSO SLOWED TO AN RATE OF 14.9 PER CENT COMPARED WITH 17.0 PER CENT IN JUNE.

RATE OF 15.1 PER

ANNUALISED

"THE JULY FIGURES REFLECT THE SLOW DOWN IN THE RESIDENTIAL PROPERTY MARKET RESULTING FROM THE GOVERNMENT'S MEASURES ΤΟ DAMPEN PROPERTY PRICES, THE DEPUTY CHIEF EXECUTIVE (BANKING) OF THE HKMA, MR DAVID CARSE, SAID TODAY (TUESDAY).

NEW LOANS APPROVED BUT NOT YET DRAWN INCREASED IN JULY TO $4.0 BILLION FROM $3.6 BILLION AFTER FALLING FOR THREE CONSECUTIVE MONTHS.

ANY

"DESPITE THIS INCREASE, THE GROWTH IN LENDING SHOULD REMAIN MODEST IN AUGUST; BUT IT WOULD BE PREMATURE FOR BANKS TO CONSIDER RELAXATION OF THEIR CAUTIOUS LENDING POLICIES, MR CARSE SAID.

LENDING FOR THE PURCHASE OF PROPERTIES IN CHINA GREW BY 1.8 PER CENT IN JULY, TO $4.1 BILLION FROM $4.0 BILLION, COMPARED WITH THE 1.7

IN GROWTH IN JUNE. MOST OF THE INCREASE WAS

LENDING FOR PER CENT RESIDENTIAL PROPERTIES.

339 GROSS LOANS MADE IN JULY ALSO INCREASED IN BOTH NUMBER (TO

NEW LOANS FROM 235) AND AMOUNT (TO $171 MILLION FROM $93 MILLION).

AMOUNT APPROVED✶ IN JULY ROSE IN NUMBER (TO 347 FROM 335) BUT FELL IN (TO $181 MILLION FROM $197 MILLION),

/Residential Mortgage