XN000022-1994-11-24 — Page 2

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THURSDAY, NOVEMBER 24, 1994

RESIDENTIAL MORTGAGE SURVEY RESULTS FOR OCTOBER 1994

THERE WAS A SLOWDOWN IN THE GROWTH OF RESIDENTIAL MORTGAGE LOANS FOR THE PURCHASE OF PROPERTIES IN HONG KONG DURING OCTOBER, ACCORDING TO THE RESULTS OF 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 INCREASED BY 0.2% IN OCTOBER (0.7% IN SEPTEMBER) TO $242.2 BILLION FROM $241.6 BILLION. THE GROWTH RATE IS BELOW THE MONTHLY AVERAGE OF 1.06% OVER THE LAST TWELVE MONTHS.

"NOTWITHSTANDING THE MODERATE GROWTH IN RECENT MONTHS, IN A RISING INTEREST RATE ENVIRONMENT IT IS PRUDENT FOR BANKS TO MAINTAIN A CAUTIOUS APPROACH TO RESIDENTIAL MORTGAGE LENDING, THE DEPUTY CHIEF EXECUTIVE (BANKING) OF HKMA, MR DAVID CARSE, SAID TODAY (THURSDAY).

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THE ANNUALISED RATE OF GROWTH IN LENDING OVER THE LAST THREE MONTHS HAS FURTHER DROPPED TO 6.6%, COMPARED WITH 7.3% IN THE THREE- MONTH PERIOD TO SEPTEMBER.

THE TWELVE-MONTH AVERAGE OF OUTSTANDING LOANS REMAINED STABLE AT AN ANNUALISED GROWTH RATE OF 12.7% COMPARED WITH 12.5% IN SEPTEMBER.

HOWEVER, NEW LOANS APPROVED BUT NOT YET DRAWN PICKED UP BY 18.0% TO $4.7 BILLION FROM $4.0 BILLION IN SEPTEMBER.

"THESE FIGURES SUGGEST THAT THE GROWTH OF OUTSTANDING LOANS COULD BE HIGHER IN NOVEMBER, MR CARSE SAID.

LENDING FOR THE PURCHASE OF PROPERTIES IN CHINA ROSE BY 3.0% IN OCTOBER TO $4.33 BILLION FROM $4.21 BILLION, COMPARED WITH THE 2.8% GROWTH IN SEPTEMBER. THE INCREASE WAS LARGELY DUR TO LENDING RESIDENTIAL PROPERTIES.

FOR

(TO

450

NEW

FROM

GROSS LOANS MADE IN OCTOBER INCREASED IN BOTH NUMBER FROM 431) AND IN AMOUNT (TO $186 MILLION FROM $162 MILLION). LOANS APPROVED IN OCTOBER ALSO INCREASED IN BOTH NUMBER (TO 228 160) AND IN AMOUNT (TO $149 MILLION FROM $87 MILLION).

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