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UN
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MONDAY, NOVEMBER 24, 1986
SECOND, THERE WAS REPORTEDLY AN INFLOW OF FUNDS INTO HONG KONG DURING THE THIRD QUARTER. UNDER THE LINKED EXCHANGE RATE SYSTEM, THIS HAS RESULTED IN AN EASING OF THE HONG KONG DOLLAR INTEREST RATES, A MORE RAPID CREDIT EXPANSION, AND AN ACCELERATION IN THE GROWTH RATES OF THE MONEY SUPPLY.
THIRD, HIGHER INTEREST RATES OFFERED FOR DEPOSITS IN FOREIGN CURRENCIES AND THE STRENGTH OF SOME MAJOR CURRENCIES HAVE LED TO A LARGER INCREASE IN FOREIGN CURRENCY DEPOSITS RELATIVE TO THE INCREASE IN OVERALL DEPOSITS.
FOURTH, IN LINE WITH THE LOWER MONEY MARKET INTEREST RATES, THE HONG KONG DOLLAR DEPOSIT RATES ADMINISTERED BY THE HONG KONG ASSOCIATION OF BANKS WERE REDUCED FURTHER IN MID-AUGUST FROM THEIR ALREADY LOW LEVELS.
ON THE LABOUR SECTOR, THE REPORT NOTES THAT INCREASED ECONOMIC ACTIVITY HAS LED TO A FURTHER IMPROVEMENT IN THE EMPLOYMENT SITUATION. IN THE THIRD QUARTER OF 1986, THE SEASONALLY ADJUSTED UNEMPLOYMENT RATE AND THE UNDEREMPLOYMENT RATE, AT 2.8 PER CENT AND 1.3 PER CENT RESPECTIVELY, WERE LOWER THAN THE RATES OF 3.0 PER CENT AND 1.9 PER CENT IN THE PREVIOUS QUARTER, AND OF 3.3 PER CENT AND 2.1 PER CENT IN THE SAME QUARTER LAST YEAR.
DURING THE 12 MONTHS TOTAL EMPLOYMENT CONTINUED TO INCREASE. ENDING JUNE 1986, EMPLOYMENT IN THE MANUFACTURING AND THE SERVICES SECTORS PARTICULARLY THE FINANCING, INSURANCE, REAL ESTATE AND BUSINESS SERVICES SECTOR AND THE WHOLESALE, RETAIL AND IMPORT-EXPORT TRADES INCREASED, WHILE EMPLOYMENT ON BUILDING AND CONSTRUCTION SITES REMAINED STABLE. LARGE INCREASES IN THE NUMBER OF VACANCIES WERE REPORTED IN MOST SECTORS DURING THE SAME PERIOD.
EARNINGS IN MOST SECTORS, IN TERMS OF PAYROLL PER PERSON ENGAGED. INCREASED SIGNIFICANTLY BOTH IN MONEY TERMS AND IN REAL TERMS IN THE TWELVE MONTHS ENDING JUNE 1986, REFLECTING THE FAVOURABLE EFFECT ON LABOUR INCOMES OF THE IMPROVED ECONOMIC PERFORMANCE. CONSTRUCTION WAGE RATES ALSO INCREASED IN REAL TERMS.
ON THE PROPERTY SECTOR, THE REPORT NOTES THAT INCREASED ECONOMIC ACTIVITY AND LOWER INTEREST RATES HAVE HELPED TO
TRADING IN THE RESIDENTIAL STIMULATE THE DEMAND FOR PROPERTY. PROPERTY MARKET WAS ACTIVE IN THE THIRD QUARTER OF 1986.
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PRICES AND RENTALS FOR RESIDENTIAL PROPERTY, WITH THE EXCEPTION OF LARGE FLATS, GENERALLY FIRMED UP. THE DEMAND FOR SHOPPING SPACE IN PRIME LOCATIONS HELD FIRM, WHILE THE SUPPLY OF OFFICE ACCOMMODATION WAS TIGHT IN SUCH AREAS AS CENTRAL, TSIM SHA TSUI AND AND WAN CHAI.
THE DEMAND