Negative assets first appeared in two years, 262 cases in the last quarter, involving nearly 1.2 billion loans.
Affected by the continuous decline in property prices, Hong Kong’s negative equity residential mortgage loans reappeared. In the fourth quarter of last year, the number of negative equity mortgages was 262. This was the case of negative assets again since the fourth quarter of 2016. Some market participants pointed out that although the property market has rebounded in recent days, property prices have not seen a significant upward trend. It is estimated that new cases of negative assets in the first quarter of this year may challenge thousands of cases.
Concentrated bank staff by policy
The HKMA pointed out that the negative equity case in the fourth quarter of last year involved an amount of 1.189 billion yuan and the unsecured portion amounted to 58 million yuan. Since the first quarter of 2011, no negative equity residences have been recorded that have been in arrears for more than three months. Mortgage loan record. The negative equity cases mainly involve loans from bankers’ mortgage loans or mortgage insurance schemes, as the number of mortgages for such loans is generally higher.
The HKMC responded that as of the end of last year, there were 60 negative equity cases under the company’s mortgage insurance scheme, all of which were 90% mortgages, involving an outstanding loan amount of 200 million yuan, accounting for 0.18% of the outstanding amount of the insurance plan.
Market participants pointed out that since the figures released by the HKMA only involve one-click loans provided by banks, they do not include the involvement of the second mortgage, and some of the high-value mortgages or negative assets provided by financial companies or real estate developers have not been reflected. The actual negative equity case should be higher than the number published by the HKMA.
According to the referral of the Meridian Mortgage, since the Sino-US trade war last year, the Hong Kong stock market and the property market have been under pressure. The property market correction rate has intensified since the third quarter, causing Hong Kong’s negative equity cases to reappear in the fourth quarter. Liu Yuanyuan, the chief vice president of Meridian, said that when many developers launched a new market last year, they also offered high-yield mortgage plans. The loan amount could reach 90% or even 10% of the mortgage price. Recently, the trading volume of the Hong Kong property market has rebounded, but the building has recently rebounded. The price has not yet reached a significant upward trend. I believe that the new cases of negative assets in the first quarter of this year will challenge thousands of cases and return to the level of the first two quarters of 2016.
New mortgage amount reduced by 21%
Wang Meifeng, managing director of Zhongyuan Mortgage Brokers, believes that even if the number of negative assets in the first quarter of this year increases, the increase is only slight, because the recent new market has driven the property market to improve, and the price of second-hand housing estates has fallen by about 10%. The decline in property prices in the first quarter has been reduced. Has seen a slowdown. Moreover, the high-volume mortgages in the past one or two years have been dominated by 80% mortgages. Unless the property prices fall by more than 20%, the negative equity cases may not increase significantly.
The HKMA also announced that the number of new applications in December last year decreased by 21.2% to 7,435 cases. The amount of new mortgage loans in the month also decreased by 20.7% to 23.5 billion yuan. As for the amount of new mortgage loans received during the month, it decreased by 17.6% to 21.3 billion yuan.
Wang Meifeng explained that the property market was weak and the impact of the festival in December last year, which caused the number of new applications to decline. The transaction volume of the property market rebounded in January. It is expected that the number of newly applied mortgages will pick up, as the new approval and new loans will lag. It is estimated that the data of new approvals and new loans in January are still weak.
In addition, the statistics of the HKMA show that at the end of December last year, RMB deposits of RMB customers were 615 billion yuan (RMB. The same below), a decrease of 0.4% per month, together with a balance of RMB 42.7 billion in RMB deposit certificates, and an overall RMB fund pool of RMB 657.7 billion. It fell 0.7%.
A spokesperson for the HKMA revealed that the overall performance of RMB deposits was stable in 2018 and rose by 6.4% for the whole year. In December last year, the total amount of RMB cross-border trade settlement was 384.9 billion yuan, a decrease of 2.1% month-on-month.