XN000022-1995-07-24 — Page 8

Residential mortgage survey results for June 1995

Growth of residential mortgage loans for the purchase of properties in Hong Kong moderated in June, following the acceleration in the previous two months, 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 grew by 1,6% in June (2.7% in May) to $255.6 billion. (The percentage change has been adjusted to allow for the sale and purchase of loans by some institutions during the month.)

months.

The growth rate is higher than the monthly average of 0.96% over the last 12

Reflecting the higher growth in April and May, the annualised rate of growth in lending over the last three months increased to 28.6%, compared with 23.0% in the three-month period to May. The 12-month average of outstanding loans showed an annualised growth rate of 11.5%, compared with 11.2% in May.

"The June figures reflect more subdued trading activity in the primary market during May," the Deputy Chief Executive (Banking) of HKMA, Mr David Carse, said.

The amount of new loans approved but not yet drawn fell by $1.7 billion (24.6%) to $5.3 billion in June.

"This suggests that residential mortgage loans should grow more slowly in July," Mr Carse said.

Lending for the purchase of properties in China increased slightly by 0.1% to $4.84 billion in June. Gross loans made in June decreased both in number (to 109 from 291) and in amount (to $68 million from $205 million). New loans approved in June also fell both in number (to 204 from 241) and in amount (to $144 million from $159 million).