t
12% and 9% respectively more than at the end of December.
Loans to individuals to purchase residential property
(including flats in the Home Ownership Scheme and Private
Sector Participation Scheme) rose by 88 during the first
quarter, and advances to credit card holders rose by 11%.
Inflows and outflows of funds
3.12
The new series of monetary statistics now available
shows changes in the net spot foreign
the net spot foreign currency positions of
(10) both banks and deposit-taking companies
During the
first quarter there was a net outflow of foreign currency from
/ the
(10) An increase in the net spot foreign currency assets of the monetary
sector (after allowing for exchange
exchange rate
rate changes) represents a foreign currency inflow into the monetary sector in Hong Kong. The monetary sector as a whole has acquired additional spot foreign currency assets as a counterpart to an increase in its net spot Hong Kong dollar liabilities, which consist mainly of deposits from customers and from banks abroad.
If banks or deposit-taking companies buy foreign currency from their customers, or from banks abroad, against a credit to those or banks' Hong Kong dollar deposits, there has been an inflow of funds (e.g. the repatriation of export earnings, or the receipt of inward
inward investment funds), and the
the net spot foreign currency assets of the monetary sector increase. Conversely, if banks or deposit-taking companies sell foreign currency to their customers or to banks abroad against a debit to their Hong Kong dollar deposits, the net spot foreign currency assets of the monetary sector decrease, and an outflow of funds from that sector takes place.
This calculation does not represent a balance of payments inflow or outflow, because it takes no account of changes in the net spot foreign currency assets or liabilities of Hong Kong residents, including individuals, commercial and industrial companies, and official holders. Equally, it takes no account of changes in the net forward position of banks, deposit-taking companies and Hong Kong residents.
18