7.
In the first seven months of 1992, domestic exports to China surged further, while those to the United States continued to revive. On the other hand, domestic exports to Japan fell slightly and those to Germany and the United Kingdom showed sharp declines.
Labour market
8.
The seasonally adjusted unemployment rate in the three months ending July, at 2.1% (provisional), was 0.4 of a percentage point lower than in the preceding three months. The underemployment rate remained stable at 2.2% (provisional) over the same period.
Prices
9.
After rising to 9.3% in June, the year-on-year rate of increase in the CPI(A) moderated again in July, to 8.8%. This was due in part to lower fresh fruit prices and more moderate increases in charges for meals at restaurants. The July inflation rate represented a significant deceleration from the peak figure of 13.9% recorded in April 1991.
Financial sector
10.
Local money market interest rates softened further during August. At 3 3/16%, the 3-month interbank rate at end-August was 1/16 of a percentage point lower than a month earlier. Meanwhile, the 3-month Eurodollar deposit rate rose by 1/16 of a percentage point to 3 7/16%. The differential between the two rates thus widened to 1/4 of a percentage point in favour of the US dollar at end-August, from 1/8 of a percentage point at end-July.
11.
The various deposit rates administered by the Hong Kong Association of Banks remained unchanged in August. At the end of the month, the savings, 3-month and 12-month deposit rates were 1 1/2%, 2 3/4% and 3 3/4% respectively. The best lending rate stood at 6 1/2%.
12.
The market exchange rate of the Hong Kong dollar remained stable at about HK$7.73 per US$ during August. Reflecting the continued depreciation of the US dollar, the effective exchange rate index declined further, from 109.8 at end-July to 108.6 at end-August.
13.
As the stalemate in the new airport talks on financial arrangements and the uncertainty over the US-China trade relationship showed their effects on the stock market, the Hang Seng Index shed 253 points during August to close the month at 5 629. Average daily turnover dropped sharply, from $3.41 billion in July to $2.40 billion in August.
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