Lloyds Pacific remains bullish on British mortgages for Hong Kong buyers investing in the country.
The British-based lender believes factors such as Prime Minister Tony Blair's support for joining the euro will have a positive effect in improving economic conditions in 2001 and 2002.
Interest rates are currently high but set to fall with inflation under control. Further falls will reduce support for sterling.
Veronica Kwong, Lloyds Bank assistant marketing director, said other positive indicators included inexpensive British stock valuations compared to those in the United States and Europe.
Also, British institutions were cash wealthy and companies were aware of the need to create shareholder value.
Unilever was an example. The household goods giant recently completed a GBP5 billion (about $62 billion) share buy-back which increased the company's underlying profits by 3 per cent.
