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13.
In December, the exchange rate of the Hong Kong dollar against the US dollar remained stable, moving within a narrow range from the high of HK$7.762 per US$ to the low of HK$7.781 per US$, the level at which it closed the month. The overall exchange value of the Hong Kong dollar, in terms of the effective exchange rate index, decreased slightly from 111.0 at end-November to 109.2 at end-December.
14.
In the local stock market, the Hang Seng Index moved narrowly in the region of 4 100 to 4 200 during most of December, before showing some rise in the last few trading days. At 4 297, it closed the month of December 148 points higher than a month earlier. Average daily turnover however decreased from HK$1,686 million in November to HK$1,123 million in December.
Property
15.
The underlying demand for small to medium-sized residential flats remained strong. However, the market has become less active after the Government announced a number of measures to curb property speculation, and the banks further tightened mortgage lending policies. The demand for shopping space held firm in the prime shopping areas. On the other hand, the market for office space remained soft, due to the ample supply. The market for factory premises was still quiet.
16.
The lukewarm response to the Government's auction of two residential sites on 17 December 1991 may suggest that developers have adopted a slightly more cautious attitude towards the purchase of residential sites.
Investment
17.
Retained imports of capital goods increased by 18% in real terms in the first ten months of 1991 over the same period in 1990. Within this category, retained imports of industrial machinery for manufacturing use registered an even sharper increase of 27%. By contrast, building and construction works were rather sluggish in recent quarters.
Economic Indicators
18.
The main economic indicators are shown in the attached statistical appendix.
- Ends