The Hong Kong Mortgage Corp will hold talks with banks within weeks to decide when to issue the next tranche of retail mortgage-backed securitisation bonds, according to vice-president of finance Philip Li Wing-kuen. Mr Li dismissed suggestions the timetable and size of the issue would be influenced by several upcoming large share offerings by mainland firms, saying there was still ample liquidity in the market. 'We will decide on those according to market demand,' Mr Li said. Established in 1999, the government-owned HKMC buys mortgage loans from banks to reduce their risk in the property market. It is the largest bond issuer in Hong Kong, using funds from the sale of debt papers and mortgage-backed securitisation bonds to buy mortgage loans. The HKMC last issued $900 million worth of securitisation bonds in November last year. Nevertheless, one fixed-income expert said he did not expect the government to issue the next tranche before next month, to avoid clashing with initial public offerings such as those of Bank of Communications (Bocom) and China Cosco Holdings. He said that last month's moves by Hong Kong Monetary Authority chief executive Joseph Yam Chi-kwong to stem hot money inflows might have already caused the HKMC to delay its plan. The corporation will not be the only organisation affected by the tightening liquidity. China Minsheng Banking Corp has postponed its share offer until August, to observe Bocom's share sale. Hang Seng Bank deputy chairman and chief executive Raymond Or Ching-fai said if the upcoming share offers received the same response as Bocom's, interbank lending rates might rise under pressure.