THURSDAY, DECEMBER 4, 1980
* THESE FIGURES ARE RECALCULATED TO EXCLUDE BANKS' LIABILITIES TO, AND CLAIMS ON, DEPOSIT-TAKING COMPANIES.
*
THE STATUTORY REQUIREMENT FOR DEPOSIT-TAKING COMPANIES TO OBSERVE A MINIMUM LIQUID ASSETS RATIO CAME INTO FORCE ON JANUARY 1, 1980.
MONEY SUPPLY
THE MONEY SUPPLY ON THE NARROWEST DEFINITION, M1 (NOTES AND COINS WITH THE PUBLIC, PLUS DEMAND DEPOSITS, OTHER THAN FROM BANKS AND DEPOSIT-TAKING COMPANIES, WITH LICENSED BANKS) WAS VIRTUALLY UNCHANGED IN OCTOBER AT $25 575 MILLION, AFTER RISING EY 6.3 PER CENT IN SEPTEMBER.
M2 (M1 PLUS SAVINGS AND TIME DEPOSITS, OTHER THAN FROM BANKS AND DEPOSIT-TAKING COMPANIES, WITH LICENSED BANKS) ROSE BY ONLY 0.1 PER CENT IN OCTOBER, FOLLOWING AN INCREASE OF 2.8 PER CENT IN SEPTEMBER.
M3 (M2 PLUS DEPOSITS FROM THE PUBLIC WITH DEPOSIT-TAKING COMPANIES) ROSE BY 2.2 PER CENT IN OCTOBER, WELL DOWN FROM ITS 3.4 PER CENT RISE IN SEPTEMBER.
IN THE LAST THREE MONTHS M1 ROSE BY 9.6 PER CENT AND M2 BY 5.5 PER CENT, VERY SHARPLY REDUCED FROM THE INCREASES OF 16.5 PER CENT AND 17.7 PER CENT RESPECTIVELY IN THE PREVIOUS THREE MONTHS. IN THE LAST THREE MONTHS M3 ROSE BY 9.0 PER CENT, AS COMPARED WITH A RISE OF 11.6 PER CENT IN THE PREVIOUS THREE MONTHS.
LOANS IN HONG KONG
TOTAL LOANS AND ADVANCES IN HONG KONG GREW BY 5.6 PER CENT IN OCTOBER, AFTER RISING BY 4.9 PER CENT IN SEPTEMBER. IN THE LAST THREE MONTHS, TOTAL LOANS AND ADVANCES IN HONG KONG ROSE EY 15.1 PER CENT. WELL UP FROM A 9.0 PER CENT INCREASE IN THE PREVIOUS THREE MONTHS.
BANK LOANS IN HONG KONG INCREASED BY 6.0 PER CENT IN OCTOBER, UP FROM A 4.8 PER CENT RISE IN SEPTEMBER. LOANS IN HONG KONG BY DEPOSIT-TAKING COMPANIES EXPANDED BY 4.3 PER CENT IN OCTOBER, LESS THAN AN INCREASE OF 5.0 PER CENT IN SEPTEMBER.
IN THE LAST THREE MONTHS, BANK LOANS IN HONG KONG ROSE BY 15.7 PER CENT AND LOANS IN HONG KONG BY DEPOSIT-TAKING COMPANIES BY 13.2 PER CENT, AGAINST THE INCREASE OF 2.4 PER CENT AND 36.4 PER CENT RESPECTIVELY IN THE PRECEDING THREE MONTHS. THESE MOVEMENTS PARTLY REFLECTED RISING MONEY MARKET RATES FROM THE MIDDLE OF AUGUST.
FOREIGN ASSETS