THURSDAY, MARCH 5, 1981
MONEY SUPPLY AND FINANCIAL STATISTICS FOR JANUARY 1981
******
THE MONEY SUPPLY AND FINANCIAL STATISTICS FOR JANUARY 1981 ARE PUBLISHED TODAY. THEY ARE AS USUAL HEAVILY INFLUENCED BY SEASONAL FACTORS IN THE PERIOD BEFORE THE LUNAR NEW YEAR WHEN THERE IS ALWAYS A SUBSTANTIAL DEMAND FOR CREDIT (PARTLY CAUSED BY THE INCIDENCE IN THE FIRST QUARTER OF THE NEED TO PAY PROFITS TAX AND SALARIES TAX), AND WHEN THE VOLUME OF BANK NOTES IN ISSUE RISES SHARPLY.
A FURTHER RISE IN THE MONEY SUPPLY, ON ALL DEFINITIONS, REFLECTED A RAPID EXPANSION IN TOTAL LOANS AND ADVANCES IN HONG KONG, PARTLY ON THESE SEASONAL GROUNDS, THOUGH IT WAS SOMEWHAT OFFSET BY AN OUTFLOW OF FUNDS FROM THE HONG KONG MONETARY SECTOR DURING THE MONTH.
AS THE FINANCIAL SECRETARY POINTED OUT IN PARAGRAPH 32 OF HIS BUDGET SPEECH, OUR MONETARY STATISTICS DO NOT YET PROVIDE A BASIS FOR REALLY MEANINGFUL ECONOMIC ANALYSIS. THE GOVERNMENT IS HOWEVER NOT YET IN A POSITION TO PUBLISH ON A REGULAR BASIS THE STATISTICS WHICH ARE NOW BEING COLLECTED UNDER THE MONETARY STATISTICS ORDINANCE.
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) ROSE BY 10. 3 PER CENT IN JANUARY, AFTER FALLING BY 1. 1 PER CENT IN DECEMBER. THE PRINCIPAL FACTOR HERE WAS A RISE OF 20. 1 PER CENT IN NOTES AND COINS HELD BY THE PUBLIC BEFORE THE LUNAR NEW YEAR FESTIVAL.
M2 (M1 PLUS SAVINGS AND TIME DEPOSITS, OTHER THAN FROM BANKS AND DTCS, WITH LICENSED BANKS) INCREASED BY 6. 1 PER CENT IN JANUARY, WELL UP FROM AN INCREASE OF 1. 9 PER CENT IN DECEMBER, REFLECTING A RISE OF 14. 6 PER CENT IN TIME DEPOSITS WITH BANKS.
M3 (M2 PLUS DEPOSITS WITH DEPOSIT-TAKING COMPANIES) INCREASED BY 4. 9 PER CENT IN JANUARY, UP FROM A 4. 1 PER CENT RISE IN DECEMBER.
IN THE LAST THREE MONTHS M1 INCREASED BY 4.0 PER CENT, WELL DOWN FROM A 9. 6 PER CENT RISE IN THE PREVIOUS THREE MONTHS. BUT THE GROWTH RATES OF M2 AND M3 IN THE LAST THREE MONTHS AT + RESPECTIVELY, 7.4 PER CENT AND 11.5 PER CENT, WERE UP FROM THE IR INCREASES OF 5.5 PER CENT AND 9.0 PER CENT IN THE PREVIOUS THREE MONTHS.
LOANS IN HONG KONG
TOTAL LOANS AND ADVANCES IN HONG KONG EXPANDED BY 6.0 PER CENT IN JANUARY, AFTER AN INCREASE OF 4.0 PER CENT IN DECEMBER. IN THE LAST THREE MONTHS, TOTAL LOANS AND ADVANCES IN HONG KONG ROSE BY 17.2 PER CENT, UP FROM A 15.1 PER CENT RISE IN THE PREVIOUS THREE MONTHS.
/BANK LOANS