Bank of China backs mortgage caution

The Bank of China Group says it is supportive of Hong Kong's property mortgage policies.

Deputy-chief executive of the bank's Hong Kong and Macau regional office, Liu Jinbao, said a rational property policy was an important factor in the SAR's economic development.

'Property accounts for 60 per cent of Hong Kong's gross domestic product while manufacturing is being phased out because of land limitations and pollution problems,' Mr Liu said at a reception of the Hong Kong Chinese Enterprises Association.

'A cautious mortgage policy will fit Hong Kong's current situation.' Apart from the property sector, he said services and high technology were other sectors the Bank of China was supporting.