FRIDAY, MAY 4, 1979
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IN ADDITION, GOVERNMENT IS ACTIVELY PURSUING WAYS OF INCREASING THE QUANTITY OF LAND ALREADY PLANNED TO BE MADE AVAILABLE FOR BUILDING FLATS, ESPECIALLY LARGE AND MEDIUM FLATS.
GOVERNMENT WILL RENEW ITS EFFORTS TO RE-DEVELOP ITS OWN RESIDENTIAL SITES TO MAXIMISE USE, AND THUS OVER A PERIOD OF TIME HELP TO REDUCE PRESSURE ON THE LARGE-MEDIUM FLAT MARKET.
THE SPOKESMAN EMPHASISED THAT THE EXTENSION OF THE PERIOD OF NOTICE OF TERMINATION PROPOSED UNDER PART V OF THE ORDINANCE WILL GIVE A BREATHING SPACE TO TENANTS AND THAT GOVERNMENT WILL KEEP A CLOSE EYE ON THE SITUATION.
GOVERNMENT WOULD CONTINUE ITS POLICY OF FACILITATING AND ENCOURAGING PRODUCTION OF FLATS BY THE PRIVATE SECTOR AND WITH THE PRODUCTION OF RENTAL AND HOME OWNERSHIP SCHEME FLATS UNDER THE PUBLIC HOUSING PROGRAMME, RENTS SHOULD STABILISE.
BANKING STATISTICS FOR MARCH 1979 ******
THE MARCH 1979 MONEY SUPPLY STATISTICS ARE PUBLISHED TODAY (FRIDAY), WITH THE MONTHLY FIGURES FOR BANKS AND DEPOSIT-TAKING COMPANIES AND THE QUARTERLY ANALYSIS OF LOANS AND ADVANCES IN HONG KONG. THE GROWTH RATE OF THE MONEY SUPPLY CONTINUES TO SLOW DOWN, THOUGH BANK LENDING IS STILL EXPANDING VERY FAST.
MONEY SUPPLY
THE MONEY SUPPLY ON BOTH DEFINITIONS ROSE IN MARCH, M1 (NOTES AND COINS IN CIRCULATION AND DEMAND DEPOSITS AT LICENSED BANKS) ROSE BY $208 MILLION (0.9 PER CENT) TO $22,307 MILLION, WHICH WAS 22.8 PER CENT ABOVE THE LEVEL AT THE END OF MARCH 1978,
IN THE FIRST THREE MONTHS OF 1979 M1 HAS RISEN BY ONLY $26 MILLION, WITH THE LEVEL OF DEMAND DEPOSITS ACTUALLY FALLING BY $203 MILLION: THIS MAY REFLECT THE HIGHER LEVEL OF INTEREST RATES AVAILABLE THIS YEAR ON TIME AND SAVINGS DEPOSITS.
M2 (M1 PLUS TIME AND SAVINGS DEPOSITS) ROSE IN MARCH BY $812 MILLION (1.1 PER CENT TO $76,794 MILLION, WHICH WAS 24.2 PER CENT ABOVE THE END-MARCH 1978 LEVEL.
IN THE FIRST THREE MONTHS OF THIS YEAR M2 HAS RISEN BY $3,388 MILLION (4.6 PER CENT), WHICH IS EQUIVALENT TO AN ANNUAL RATE OF A LITTLE UNDER 20 PER CENT.
THESE FIGURES SUGGEST THAT THE GROWTH RATE OF THE MONEY SUPPLY IS FALLING TOWARDS A RATE MORE COMPATIBLE WITH THE FORECAST GROWTH RATE OF GDP IN MONEY TERMS IN 1979.
THIS TREND