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WEDNESDAY, FEBRUARY 29, 1984
+ IN PARTICULAR, FOLLOWING THE SHARP DEPRECIATION IN SEPTEMBER, THE RATE OF INFLATION INCREASED IN THE FOURTH QUARTER TO 11.9 PER CENT, COMPARED WITH 9.1 PER CENT IN THE THIRD QUARTER. NOW THAT THE EXCHANGE RATE HAS SUCCESSFULLY BEEN STABILISED THIS ACCELERATION IN THE RATE OF INFLATION WILL SOON REVERSE.+
SIR JOHN SAID HE DID NOT INTEND TO TOUCH ON THE COURSE OF THE DIPLOMATIC NEGOTIATIONS NOW UNDER WAY IN PEKING. IT WAS, HOWEVER, CLEAR THAT SENTIMENTS ABOUT THEM HAD HAD SOME
INFLUENCE ON ECONOMIC AND MONETARY TRENDS, HE SAID.
+UNCERTAINTY IS POSSIBLY A LARGER THREAT THAN LACK OF CONFIDENCE. FIXED CAPITAL FORMATION HAS REMAINED LOW THOUGH THERE ARE RECENT INDICATIONS OF IMPROVEMENT.
+NON-PERFORMING BANK LOANS REMAIN A SOURCE OF CONCERN. BUT EVEN SO MANY WILL ENVY US. FEW OTHER PLACES IN THE WORLD CAN OFFER VIRTUALLY NO CENTRAL GOVERNMENT DEBT, LITTLE UNEMPLOYMENT, BUSTLING INDUSTRY AND SIGNIFICANT REAL GROWTH. ALL IS ACCOMPLISHED IN FREEDOM. AND THERE IS GOOD REASON TO BELIVE IN, AND TO INVEST IN, THE FUTURE PROSPERITY AND STABILITY OF HONG KONG.+
POSITION AS FINANCIAL CENTRE STRENGTHENED
****
DESPITE THE VARIOUS PROBLEMS OF 1983, HONG KONG'S POSITION AS AN INTERNATIONAL FINANCIAL CENTRE HAS STRENGTHENED, THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE, TOLD THE LEGISLATIVE COUNCIL THIS (WEDNESDAY) AFTERNOON.
SIR JOHN, IN PRESENTING HIS 1984-85 BUDGET PROPOSALS SAID ALTHOUGH THE NUMBER OF REGISTERED DEPOSIT-TAKING COMPANIES HAS DECREASED, MORE BANK AND DEPOSIT-TAKING COMPANY LICENCES HAVE BEEN GRANTED AND A FINANCIAL FUTURES MARKET IS ALSO BEING STUDIED+.
HE ADDED THAT TOTAL DEPOSITS IN ALL DEPOSIT-TAK ING INSTITUTIONS WERE $167 BILLION AT THE END OF FEBRUARY 1982 WHEN THE INTEREST TAX ON FOREIGN CURRENCY DEPOSITS WAS REMOVED. BUT BY THE END OF DECEMBER 1983 THE TOTAL WAS $292 BILLION.
HE SAID HONG KONG'S FINANCIAL SECTOR HAD EVOLVED IN
MUCH THE SAME FUNDAMENTAL WAY AS HAD OTHER SECTORS OF ITS ECONOMY - THROUGH MARKET FORCES WITH NO SPECIAL STIMULUS FROM THE GOVERNMENT.