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New residential mortgage lending increased in August to an eleven-month high, according to the HKMA's monthly survey of residential mortgage lending, with the value of new loans drawn down during the month rising by 13.6% to HK$7.6 billion.

New approvals decreased by 32.3% following the strong growth in the previous month, with most of the reduction coming in primary market transactions. New applications also decreased, by 29.7%.

The proportion of new approvals priced at more than 2% below the best lending rate was 92.9%, up from 92.4% in July.

The outstanding amount of mortgage loans grew by 0.1% to HK$522.4 billion.

The mortgage delinquency ratio improved further to 1.09% from 1.10%, while the rescheduled loan ratio remained unchanged at 0.55%. The combined ratio stood at about 1.65%*.

"The recovery in mortgage lending experienced in recent months continued into August," commented Mr William Ryback, Deputy Chief Executive of the HKMA. "At the same time, the mortgage delinquency ratio has continued to show a small but steady improvement."

New loans drawn down for purchasing properties in Mainland China decreased by 5.4% to HK$113 million. The amount of outstanding loans at end-August was HK$6.2 billion.

* Not the sum of the two ratios, due to rounding.

For further enquiries, please contact:

Jasmin Fung, Manager (Press), at 2878 8246 or

Kevin Ip, Manager (Press), at 2878 1687

End/Monday, September 29, 2003

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