At the downturn in the Hong Kong property market, the level of mortgage loans of negative asset housing in Hong Kong has soared to the highest level in 20 years.
Bloomberg reported that according to the data released by the Hong Kong HKMA on Wednesday (January 31), as of the end of December last year, the amount involved in negative asset residential mortgage loans wasS $ 100 million) increased to HK $ 131.3 billion, the highest level since 2003.As of the end of December last year, the number of such loans increased by more than double to 25,163 compared with the end of the third quarter of last year.
It is reported that when the balance of the loan repay exceeds the current market value of the mortgage property, mortgage loans have become negative asset residential mortgage loans.
According to the data of the Hong Kong HKMA, negative asset residential mortgage loans accounted for about 7.1%of the total amount of unpaid loans.
Ruan Guoheng, vice president of the Hong Kong Monetary Administration, said at a press conference before the release of the data on Wednesday that when the property price fell, the number of negative assets would naturally rise.He said that the HKMA is closely monitoring the repayment situation and pointed out that the ratio of negative assets is still very low.
