[R]6:00AM New York, 6:00PM Hong Kong – Hong Kong stocks fell sharply after regulators increased down payment for luxury homes. Property developers are seeking cheaper and more land as home prices have surged 28% in a year. Earnings focus was Baidu.com, China Life Insurance and Ping An.[/R]

Hong Kong stocks fell the most in three weeks led by property stocks and equities in Shanghai fell to a five-week low on falling commodities. Markets in Japan and Australia were weak too.

Property stocks led decliners in Hong Kong after the Monetary Authority lifted down payment requirements for luxury homes to 40% from 30% that cost more than HK$20 million ($2.6 million).

Developers are also looking for additional supply of land from the authorities to stem the rising home prices that have risen 28% in a year.

Hong Kong Monetary Authority announced on Friday that it is considering measures to put a lid of soaring property prices that are being induced by cash-rich buyers from China.

In Hong Kong trading Hang Seng Index fell 1.9% or 420.14 to 22,169.59, and the China Enterprises of Hong Kong-listed mainland shares, or H shares, dropped 1.3% or 170.43 to 13,145.59. In Shanghai trading, CSI 300 Index declined 2.9% or 99.52 to 3,314.72.

Daily turnover on main-board fell to HK$73.56 billion from HK$76 billion on Friday.

Hong Kong markets were closed yesterday for a public holiday.

China’s Quarterly Growth Quickens

Xinhua News Agency reported today that Chinese Vice Premier Li Keqiang said at the Third International Tax Dialogue Global Conference the country’s quarterly economic growth is rising, while the contribution of domestic demand to economic growth is increasing.

“We should maintain the continuity and stability of macro-economic policies while enhance the flexibility and sustainability of these policies,” said Li.

The Vice Premier also indicated that it will continue with its fiscal stimulus measures and loose monetary policy in order to support economic growth.

National Bureau of Statistics reported that China’s economy rose 6.1% from a year ago in the first quarter and gained 7.9% and 8.9% in the second and third quarter respectively.

HK Residental Mortgages Rise 17% in September

Hong Kong Monetary Authority reported today on its Web site that 23 authorised institutions that participate in its monthly survey of residential mortgage lending new mortgage loans rose 17% to HK$23.3 billion in September from the previous month.

New loan approvals declined 2.5% to HK$33.3 billion as a reduction of HK$1.2 billion in primary market transactions and of HK$800 million in approvals for secondary market transactions.

The HKMA indicated that approvals for refinancing loans jumped by HK$1.2 billion or 26.1%, while the number of new applications edged up to 19,519 in September from the previous month.

An estimated 42% of the new mortgage loans approved in September were priced at more than 2.5% below the best lending rate, compared with 47% in August.

In addition, the proportion of new mortgage loans priced with reference to rates other than the best lending rate (mostly HIBOR) increased to 54.5% in September from 49.8% in August.

Outstanding value of mortgage loans climbed 1.3% to HK$626 billion.