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TUESDAY, JULY 3, 1979
THIS SEEMINGLY SHARP ANNUAL INCREASE REFLECTED A LOW MAY 1978 FIGURE M1 IS STILL (DESPITE ITS RECENT ERRATIC MOVES) BELOW ITS LEVEL AT THE END OF JANUARY, WHICH WAS OF COURSE INFLUENCED BY THE LUNAR NEW YEAR EXPANSION OF THE NOTE CIRCULATION.
M2 (M1 PLUS TIME AND SAVINGS DEPOSITS) ROSE IN MAY BY $244 MILLION (0.3 PER CENT) TO $78,620 MILLION, WHICH WAS 22.3 PER CENT ABOVE THE LEVEL OF MAY 1978.
THE YEAR-ON-YEAR INCREASE IN M2 IS THE LOWEST FIGURE FOR 15 MONTHS, AND IN THE LAST THREE MONTHS M2 HAS RISEN AT AN ANNUAL RATE OF 14.6 PER CENT, WHICH IS RATHER LESS THAN THE FORECAST GROWTH RATE OF THE ECONOMY IN MONEY TERMS IN 1979.
BANKING STATISTICS
BANK LOANS AND ADVANCES IN HONG KONG ROSE IN MAY 1979 BY ONLY $524 MILLION (0.9 PER CENT) TO $60,640 MILLION, WHICH WAS 46.1 PER CENT ABOVE THE END OF MAY 1978. IN THE LAST THREE MONTHS, HOWEVER, BANK LOANS HAVE RISEN BY 7.2 PER CENT, EQUIVALENT TO AN ANNUAL RATE OF 32 PER CENT, WHICH THOUGH STILL HIGH IS A SUBSTANTIAL REDUCTION ON THE GROWTH RATE OF EARLIER MONTHS.
THE AVERAGE LIQUIDITY OF THE BANKING SYSTEM FELL SLIGHTLY, FROM 48.25 PER CENT TO 48.17 PER CENT, WHILE THE RATIO OF LOANS AND ADVANCES IN HONG KONG TO DEPOSITS ROSE FURTHER FROM 83.8 PER CENT TO 84.2 PER CENT.
TWO MORE RECENTLY-LICENSED BANKS BEGAN TO OPERATE DURING MAY, BRINGING THE NUMBER OF REPORTING BANKS TO 99.
DEPOSIT-TAKING COMPANIES
DEPOSITS AT THE 246 REGISTERED DEPOSIT-TAKING COMPANIES ROSE IN MAY 1979 BY $1,602 MILLION TO $16,964 MILLION, AND THE AMOUNT PLACED BY THESE COMPANIES WITH BANKS IN HONG KONG ROSE BY $251 MILLION TO $11,951 MILLION, SO THAT THEIR NET DEPOSIT LIABILITIES FOR MONEY SUPPLY PURPOSES ROSE BY $1,351 MILLION TO $5,013 MILLION.
LOANS AND ADVANCES IN HONG KONG BY DEPOSIT-TAKING COMPANIES ROSE BY $176 MILLION TO $10,604 MILLION, AND THE AMOUNT BORROWED BY THESE COMPANIES FROM BANKS IN HONG KONG FELL BY $136 MILLION TO $8,106 MILLION, SO THAT THEIR NET LENDING IN HONG KONG ROSE BY $312 MILLION TO $2,498 MILLION.
LENDING IN HONG KONG BY BANKS AND DEPOSIT-TAKING COMPANIES TOGETHER ROSE IN MAY BY $836 MILLION (1.3 PER CENT).
IN THE LAST THREE MONTHS THEIR COMBINED LENDING HAS RISEN BY 6.6 PER CENT, EQUIVALENT TO 29 PER CENT AT AN ANNUAL RATE WHICH (THOUGH STILL HIGH) IS LOWER THAN THE CURRENT RATE OF INCREASE IN LENDING BY BANKS ALONE.
THE NET IDENTIFIABLE FOREIGN ASSETS OF DEPOSIT-TAKING COMPANIES ROSE IN MAY BY $1,369 MILLION TO $9,543 MILLION, LARGELY REFLECTING A SHARP RISE OF $1,161 MILLION TO $22,198 MILLION IN THEIR LENDING ABROAD.
MONEY SUPPLY .....