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MONEY SUPPLY AND FINANCIAL STATISTICS FOR JULY
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THE MONEY SUPPLY AND FINANCIAL STATISTICS FOR JULY 1981 ARE PUBLIKED TODAY (WEDNESDAY). THEY SHOW A DECLINE IN THE MONEY SUPPLY, ON ALL MEASURES, AFTER THE RISES RECORDED IN PREVIOUS MONTHS.
THE FALL REFLECTS A REDUCTION IN LOANS AND ADVANCES IN HONG KONG DURING THE MONTH, AND ALSO AN OUTFLOW OF FUNDS FROM THE HONG KONG MONETARY SECTOR, PRESUMABLY ON INTEREST RATE CONSIDERATIONS IT ALSO SUGGESTS THAT THE INFLUENCE OF NEW LEGISLATION ON BANKS AND DEPOSIT-TAKING COMPANIES, WHICH AS MENTIONED LAST MONTH DISTORTED THE END-JUNE FIGURES, CEASED TO BE FELT IN JULY.
MONEY SUPPLY
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ORIGINAL SERIES
THE MONEY SUPPLY ON THE NARROWEST DEFINITION, M1, FELL BY 1.8 PER CENT IN JULY, AFTER A FALL OF 4.0 PER CENT IN JUNE. M2 FELL BY 1.4 PER CENT IN JULY, FOLLOWING A RISE OF 4.3 PER CENT IN JUNE.
M3 FELL BY 3.3 PER CENT IN JULY, AFTER RISING BY 6.0 PER CENT IN JUNE. THE JULY FALL REFLECTED A 6.7 PER CENT REDUCTION IN DEPOSITS WITH DEPOSIT-TAKING COMPANIES.
IN THE LAST THREE MONTHS M1 ROSE BY 1.7 PER CENT WHILE M2 ROSE BY 3.7 PER CENT, IN THE LAST THREE MONTHS M3 ROSE BY 8.2 PER CENT.
MONEY SUPPLY
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NEW SERIES
THE MONEY SUPPLY ON ALL DEFINITIONS IN THE NEW SERIES FELL IN JULY, WITH M3-TOTAL DOWN BY 3.4 PER CENT AND HK$M3 DOWN BY 3.3 PER CENT. IN THE LAST THREE MONTHS M3-TOTAL ROSE BY 8.0 PER CENT, WHILE HK$M3 ROSE BY 5.0 PER CENT. IN THE FIRST SEVEN MONTHS OF THIS YEAR (THE LONGEST PERIOD FOR WHICH THE SERIES IS AVAILABLE) HK$M3 HAS RISEN BY 12.6 PER CENT, EQUIVALENT TO AN ANNUAL RATE OF SOME 22 PER CENT.
LOANS IN HONG KONG
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ORIGINAL SERIES
TOTAL LOANS AND ADVANCES IN HONG KONG FELL BY 0.6 PER CENT IN JULY, AFTER AN INCREASE OF 4.4 PER CENT IN JUNE. IN THE LAST THREE MONTHS TOTAL LOANS AND ADVANCES IN HONG KONG ROSE BY 10.8 PER CENT.
BANK LOANS IN HONG KONG FELL BY 1.3 PER CENT IN JULY BUT LOANS IN HONG KONG BY DEPOSIT-TAKING COMPANIES ROSE BY 1.3 PER CENT, FOLLOWING THEIR RESPECTIVE INCREASES OF 3.4 PER CENT AND 7.4 PER CENT IN JUNE. IN THE LAST THREE MONTHS BANK LOANS IN HONG KONG ROSE BY 8.5 PER CENT AND LOANS IN HONG KONG BY DEPOSIT-TAKING COMPANIES BY 17.9 PER CENT.
UNLIKE THE NEW SERIES THESE FIGURES DO NOT IDENTIFY THE PLACE WHERE THE LOANS ARE TO BE USED, BECAUSE A BORROWER IN HONG KONG MAY VERY WELL BORROW IN HONG KONG FOR USE OUTSIDE HONG KONG.
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