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New mortgage lending increased in April, according to the HKMA's monthly survey of residential mortgage lending. But new approvals and new applications for loans were lower.

The value of new loans drawn down during the month rose by 23.7% to HK$6.3 billion. However, the value of new approvals decreased by 14.8% to HK$5.9 billion. The number of applications for new loans was down by 23.6%.

The proportion of new approvals that were priced at more than 2% below the best lending rate rose to 91.8% from 91.5%.

The amount outstanding of mortgage loans declined by 0.1% to HK$528.2 billion.

The mortgage delinquency ratio increased slightly to 1.14% from 1.11%, while the rescheduled loan ratio remained unchanged at 0.46%. The combined ratio thus increased to 1.60% from 1.57%.

"The mortgage delinquency ratio has been on a slow rise over the past few months," said Mr David Carse, Deputy Chief Executive of the HKMA. "While a figure of just over 1% is not too alarming in itself, and the recent increase is not surprising given the current economic environment, this is something that will need to be watched closely."

New loans drawn down for purchasing properties in Mainland China decreased by 3.6% to HK$142 million. The amount of outstanding loans at end-April was steady at HK$6.4 billion.

For further enquiries, please contact:

Sylvia Yip, Manager (Press), at 2878 1687 or

Thomas Chan, Senior Manager (Press), at 2878 1480

End/Thursday, May 29, 2003

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