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HKMC to promote its financial intermediary role with mainland

(Xinhua)
Updated: 2008-06-03 14:42

Hong Kong Mortgage Corporation (HKMC) will promote its financial intermediary role with the Chinese mainland and its business model in other regional and Middle Eastern markets, Chairman of its Board of Directors John Tsang said on Monday.

In the corporation's 2007 annual report published on Monday, Tsang said by sharing its experience and expertise the body can contribute to the development of the Chinese mainland and overseas markets, enhancing Hong Kong Special Administrative Region's status as an international finance center.

The corporation will improve its product range with its business diversification strategy and strong emphasis on risk management, he added.

While expecting 2008 will be a challenging year with the global effects of the US market turmoil, Tsang said he is confident the corporation will meet its goals of reinforcing Hong Kong's banking stability and promoting home ownership and debt market development.

The corporation provided mortgage insurance coverage for HK$13.2 billion ($1.69 billion) in newly-originated mortgage loans in 2007, achieving 12 percent market penetration.

It has bought HK$9.6 billion ($1.23 billion) in financial assets. It has maintained excellent asset quality with a combined delinquency and rescheduled loan ratio of 0.03 percent for mortgage insurance, and 0.21 percent for Hong Kong residential mortgages.

For seven consecutive years, the corporation has remained the most active corporate issuer in the Hong Kong dollar debt market, and achieved long-term foreign and local currency debt rating of 'Aaa' by Moody's Investors Service and 'AA' by Standard and Poor's - being the first and so far the only triple-A rated institution in Hong Kong.