The Hong Kong Mortgage Corp's first public tender to buy residential mortgages received a warm response yesterday, with the $1 billion offer ending 1.45 times over-subscribed. The corporation received bids from approved banks amounting to $2.45 billion. The average yield on the mortgages accepted by the corporation was 10.42 per cent, net of service fees, while the lowest yield accepted was 10.26 per cent, still higher than the minimum net required yield of 10.25 per cent set by the corporation. A corporation spokesman would not disclose the highest yield received, saying only that the choice of successful bidders was based purely on the level of yield submitted. Four institutions were successful in the tender: Dao Heng Bank, First Pacific Bank, International Bank of Asia and Orix Asia. The spokesman did not name the institutions that submitted bids but failed in the tender. Chase Manhattan Bank and Wing Lung Bank said they had submitted bids. The Bank of East Asia, Asia Commercial Bank, Standard Chartered Bank, Kwong On Bank and Wing Hang Bank did not participate, sources said. It was unknown whether Chekiang First Bank, Hongkong Chinese Bank and Shanghai Commercial Bank had participated. All these institutions signed agreements with the corporation as approved sellers last year, meaning the features of their home-loan portfolios had been examined by the corporation as fitting its purchasing criteria. The spokesman said the corporation considered the tender results very encouraging. She said the minimum net required yield for the next purchase would be set according to market conditions.