5 September 2006

Dear Sir/Madam,

Reporting of Non-Bank China Exposures

I wrote to you on 5 December 2005 introducing several changes to the return of Quarterly Analysis of Loans and Advances and Provisions (Quarterly Return) and the monthly Survey on Residential Mortgage Lending (Monthly Survey), in relation to the reporting of Non-Bank China Exposures by Authorized Institutions (AIs). This letter serves to remind you that the new reporting requirements will come into effect starting from the position as of end-September 2006.

The electronic file of the revised Quarterly Return will be available for downloading from the HKMA private website (www.stet.finnet.hk) after 25 September 2006. The softcopy of the template for the Monthly Survey will be sent by electronic mail via the STET system to the relevant AIs on 12 September 2006. Details relating to the submission of the Quarterly Return and Monthly Survey for the position as of end-September 2006 and onwards are as follows:

Should you have any question on the above, please feel free to approach your usual supervisory contact at the HKMA or Mr Yeung Lap-yan (Tel no.: 2878-1589) / Mr Thomas Wong (Tel. no.: 2878-1553). For queries relating to the STET templates, please contact the STET helpdesk at 2878-1800.

Yours faithfully,

Arthur Yuen
Executive Director
(Banking Supervision)

¹In the case of an AI incorporated in Hong Kong with overseas branches, the information required under Part II and Notes (3), (4), (5), (6), (7) of the return may be submitted separately within a period to be agreed with the HKMA if the AI has difficulty in following the timeline. However, the information should be submitted no later than 6 weeks after the end of each quarter.