The cases of Hong Kong residential mortgage loans (RMLs) in negative equity has fallen by 92 percent within three years, the Hong Kong Monetary Authority ( HKMA) announced here Friday.

According to the results of HKMA's latest survey, the number of RMLs in negative equity decreased further by some 400 cases to about 8,800 cases with an aggregate value of 15 billion Hong Kong dollars (nearly 2 billion U.S. dollars) in the three months to end- June 2006. Compared with the peak of about 106,000 cases at end- June 2003, the number has fallen by 92 percent.

The estimated unsecured portion of these loans was little changed at 2 billion Hong Kong dollars. Correspondingly, the loan- to-value ratio of the negative equity RMLs remained unchanged at 113 percent. The three-month delinquency ratio of the negative equity RMLs rose to 1.13 percent from 1.04 percent at end-March 2006.

Source: Xinhua