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The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Monetary Authority announced today (October 29) the results of its latest survey on residential mortgage loans (RMLs) in negative equity*.
The estimated number of RMLs in negative equity decreased to 6 cases** at end-September 2013 from 21 cases at end-June 2013.
The aggregate value of RMLs in negative equity fell to HK$31 million at end-September 2013 compared with HK$87 million at end-June 2013.
The unsecured portion of these loans remained unchanged at HK$1 million at end-September 2013.
Since the first quarter of 2011, there have been no RMLs in negative equity with delinquencies of more than three months.
* The mortgage portfolio of the surveyed authorised institutions represents about 99% of the industry total. The survey results have been extrapolated to approximate the position of the banking sector as a whole.
** The figures derived from the survey relate only to RMLs provided by authorised institutions on the basis of first mortgages and which the reporting institution knows to be in negative equity (i.e. the outstanding loan amount with the reporting institution exceeds the current market value of the mortgaged property). Not included in these figures are some RMLs associated with co-financing schemes which would be in negative equity if the second mortgages were taken into account. The extent to which such RMLs are in negative equity is not known because authorised institutions do not maintain records on the outstanding balances of the second mortgages.
Ends/Tuesday, October 29, 2013
Issued at HKT 16:50
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