WEDNESDAY, AUGUST 3, 1983
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MONETARY STATISTICS FOR JUNE 1983
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MONETARY STATISTICS FOR JUNE 1983 WERE PUBLISHED TODAY.
THE MONTH MARKS THE END OF THE TWO-YEAR TRANSITIONAL PERIOD FOR THE ESTABLISHMENT OF THE THREE-TIER FINANCIAL STRUCTURE.
DURING THE MONTH, FOUR REGISTERED DEPOSIT-TAKING COMPANIES TOOK UP LICENSED STATUS AND SIX HAD THEIR REGISTRATIONS REVOKED AT THEIR OWN REQUEST, MOSTLY DUE TO INABILITY TO MEET THE MINIMUM PAID-UP CAPITAL REQUIREMENT OF $10 MILLION.
THERE WAS THUS A SUBSTANTIAL SHIFT OF DEPOSITS FROM REGISTERED DEPOSIT-TAKING COMPANIES TO BANKS AND LICENSED DEPOSIT-TAKING COMPANIES.
DURING THE MONTH, FOREIGN CURRENCY DEPOSITS, WHICH INCLUDE +SWAP+ DEPOSITS, CONTINUED TO INCREASE RAPIDLY.
BUT UNLIKE THE SITUATION IN MAY, ONLY A SMALL PART OF THE INCREASE REFLECTED THE EXCHANGE RATE VALUATION EFFECT AS THE EXCHANGE VALUE OF THE HONG KONG DOLLAR HAD STABILISED IN THE SECOND HALF OF JUNE.
HONG KONG DOLLAR DEPOSITS REMAINED VIRTUALLY UNCHANGED OVER THE MONTH.
TOTAL MONEY SUPPLY ON ALL DEFINITIONS INCREASED IN JUNE. THE NARROWEST DEFINITION, TOTAL M1, RECORDED THE BIGGEST RISE AS SUBSTANTIAL FOREIGN CURRENCY TIME DEPOSITS WHICH MATURED A THE END OF THE MONTH WERE LEFT ON DEMAND.
WITH THE EXCEPTION OF HK$M3, WHICH CONTINUED TO DECREASE, ALTHOUGH ONLY MARGINALLY, HKS MONEY SUPPLY INCREASED, REVERSING THE DECREASING TREND IN THE PREVIOUS FOUR OR FIVE MONTHS.
TOTAL LOANS AND ADVANCES GREW ONLY MARGINALLY IN JUNE.
HONG KONG DOLLAR MONEY SUPPLY
THE HK$ MONEY SUPPLY ON THE BROADEST DEFINITION, HK$M3, DROPPED BY 0.2 PER CENT, FOLLOWING THE 1.1 PER CENT FALL IN MAY.
REVERSING THE DECLINING TREND, HK$ MONEY SUPPLY ON THE NARROWER DEFINITIONS, HK$M1 AND HK$M2, ROSE BY 1.4 PER CENT AND 1.3 PER CENT RESPECTIVELY, FOLLOWING THE CORRESPONDING FALLS OF 0.8 PER CENT AND 0.6 PER CENT IN MAY.
IN THE THREE MONTHS TO JUNE, HK$M1 FELL BY 1.0 PER CENT, HK$M2 BY 0.5 PER CENT AND HK$M3 BY 2.5 PER CENT. OVER THE TWELVE MONTHS, HOWEVER, INCREASES OF 11.2 PER CENT, 14.9 PER CENT AND 2.1 PER CENT RESPECTIVELY WERE RECORDED.
/TOTAL MONEY
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