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191345
Mon, 06/27/2011 - 15:58
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Hong Kong banks' mortgage loans drop slightly in May
By Kim Young-gyo
HONG KONG (Yonhap) - Hong Kong banks' home-backed lending dropped slightly on-month in May, officials said Monday, indicating growing caution among buyers as mainland China continues its tightening moves.
New mortgage loans drawn in Hong Kong went down last month by 1.4 percent to HK$26.5 billion (US$3.4 billion) compared with April, the Hong Kong Monetary Authority (HKMA) said.
However, new loans approved during the month rose 14.8 percent on-month to HK$31.6 billion.
The increase in new loan applications in May reflects more active residential property transactions in May compared to the low volume in April, the Monetary Authority said.
"It may also be a result of the low-base effect because of the intervening Easter holidays in April," the HKMA said in a statement.
"The number of new applications in May is lower than the monthly new applications between January and March this year."
The outstanding value of mortgage loans increased by 1.3 percent to HK$780.1 billion, according to the authority.
The mortgage delinquency ratio fell to a record low of 0.01 percent, while the rescheduled loan ratio remained at 0.03 percent in May.
Earlier this month, the Hong Kong government issued revised guidelines to banks, requiring them to immediately implement five measures to strengthen risk management in their residential mortgage lending business.
The measures included lowering the applicable maximum loan-to-value ratio by at least 10 percent regardless of property types or values for a mortgage loan applicant whose principal income is not derived from Hong Kong.
Recent heated demand in Hong Kong's housing market was largely attributed to a massive influx of buyers from mainland China.
The Hong Kong government's tighter measures took place just before Wang Guangya, the top Beijing official on Hong Kong and Macao, visited the two territories.
After his visit, Wang, director of the Chinese State Council's Hong Kong and Macao Affairs Office, urged the Hong Kong government to act with urgency to deal with the soaring property prices.
Hong Kong's housing market was seriously affected by the global financial crisis, but after falling about 18 percent from June to December 2008, residential prices started to rebound.
The average price of overall housing properties is estimated to be up 45 percent or more from the bottom reported during the recession.
HONG KONG (Yonhap) - Hong Kong banks' home-backed lending dropped slightly on-month in May, officials said Monday, indicating growing caution among buyers as mainland China continues its tightening moves.
New mortgage loans drawn in Hong Kong went down last month by 1.4 percent to HK$26.5 billion (US$3.4 billion) compared with April, the Hong Kong Monetary Authority (HKMA) said.
However, new loans approved during the month rose 14.8 percent on-month to HK$31.6 billion.
The increase in new loan applications in May reflects more active residential property transactions in May compared to the low volume in April, the Monetary Authority said.
"It may also be a result of the low-base effect because of the intervening Easter holidays in April," the HKMA said in a statement.
"The number of new applications in May is lower than the monthly new applications between January and March this year."
The outstanding value of mortgage loans increased by 1.3 percent to HK$780.1 billion, according to the authority.
The mortgage delinquency ratio fell to a record low of 0.01 percent, while the rescheduled loan ratio remained at 0.03 percent in May.
Earlier this month, the Hong Kong government issued revised guidelines to banks, requiring them to immediately implement five measures to strengthen risk management in their residential mortgage lending business.
The measures included lowering the applicable maximum loan-to-value ratio by at least 10 percent regardless of property types or values for a mortgage loan applicant whose principal income is not derived from Hong Kong.
Recent heated demand in Hong Kong's housing market was largely attributed to a massive influx of buyers from mainland China.
The Hong Kong government's tighter measures took place just before Wang Guangya, the top Beijing official on Hong Kong and Macao, visited the two territories.
After his visit, Wang, director of the Chinese State Council's Hong Kong and Macao Affairs Office, urged the Hong Kong government to act with urgency to deal with the soaring property prices.
Hong Kong's housing market was seriously affected by the global financial crisis, but after falling about 18 percent from June to December 2008, residential prices started to rebound.
The average price of overall housing properties is estimated to be up 45 percent or more from the bottom reported during the recession.
