FRIDAY, AUGUST 24, 1990
FOR
THIRDLY, THE PROGRAMME FOR ISSUE OF EXCHANGE FUND BILLS WAS LAUNCHED IN MARCH. THESE BILLS PROVIDE AN ADDITIONAL INSTRUMENT CONDUCTING MONEY MARKET OPERATIONS FOR THE PURPOSE OF MAINTAINING EXCHANGE RATE STABILITY.
FOURTHLY, THE GROWTH IN HONG KONG DOLLAR DEPOSITS AND IN THE KONG DOLLAR MONEY SUPPLY WERE BROADLY IN LINE WITH THAT OF THE
HONG ECONOMY.
FIFTHLY, DOMESTIC LOANS AND ADVANCES GREW LESS RAPIDLY DURING THE SECOND QUARTER THAN DURING THE FIRST. MOREOVER, THEY ROSE MORE SLOWLY THAN HONG KONG DOLLAR DEPOSITS.
LASTLY, LOCAL STOCK PRICES AND TURNOVER WERE GENERALLY ON A RISING TREND, PARTICULARLY DURING LATE MAY AND JUNE.
THE GDP AND
THE GOVERNMENT ECONOMIST SAID THAT IN UPDATING PRICE FORECASTS FOR 1990 IN THE LIGHT OF THESE DEVELOPMENTS, ADJUSTMENTS WERE MADE TO SOME OF THE COMPONENT FORECASTS.
"FOR
THE REST OF THE YEAR, RE-EXPORTS SHOULD CONTINUE TO SHOW STRONG GROWTH, SUPPORTED IN PART BY THE DEVELOPMENT OF OUTWARD PROCESSING ACTIVITIES, MR TANG SAID.
WEAK.
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"THE PERFORMANCE OF DOMESTIC EXPORTS WOULD, HOWEVER, REMAIN DOMESTIC DEMAND IS EXPECTED TO INCREASE SLOWLY, HE SAID.
"
"MOST RECENTLY, THE OUTBREAK OF THE GULF CRISIS HAS CREATED MUCH UNCERTAINTY IN RELATION TO ECONOMIC TRENDS NOT ONLY IN HONG KONG BUT WORLD WIDE,' MR TANG POINTED OUT.
It
"HIGHER OIL PRICES WILL TEND TO DAMPEN ECONOMIC ACTIVITY IN THE INDUSTRIALISED COUNTRIES WHICH ARE HONG KONG'S MAJOR EXPORT MARKETS, HE SAID.
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"IN DUE COURSE. THIS WILL RESTRAIN DEMAND FOR HONG KONG'S EXPORTS, THEREBY WEAKENING THE IMPETUS TO GROWTH, HE NOTED.
BE
Ir
"OVERALL, THE GROWTH OF THE ECONOMY FOR THIS YEAR IS LIKELY TO MARGINALLY SLOWER THAN WAS FORECAST EARLIER. IN THIS UPDATE, THE GDP IS FORECAST TO GROW BY 2.5 PER CENT IN REAL TERMS, MR TANG SAID.
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REGARDING THE EXTERNAL SECTOR, MR TANG SAID THE RECENT TREND SUGGESTED THAT RE-EXPORTS TO MARKETS OTHER THAN CHINA WOULD PROBABLY REMAIN ROBUST IN THE NEXT FEW MONTHS.
"AS FOR RE-EXPORTS TO CHINA, A RECOVERY IN THE LATTER PART OF THE YEAR SEEMS LIKELY, IN VIEW OF MEASURES BEING TAKEN BY CHINA TO REFLATE ITS ECONOMY.
"THE PERFORMANCE
OF DOMESTIC EXPORTS IS, HOWEVER, FAR LESS
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ENCOURAGING, HE NOTED.
"DOMESTIC EXPORTS TO SOME OF THE MAJOR MARKETS LIKE THE UNITED STATES, THE UNITED KINGDOM AND JAPAN ARE STILL SUFFERING SETBACKS," HE EXPLAINED.
/"IN GENERAL,