中
FRIDAY, NOVEMBER 22, 1991
FIRST, AFFECTED BY PROBLEMS IN THE REST OF THE BANK OF CREDIT AND COMMERCE GROUP, THE OPERATION OF BANK OF CREDIT AND COMMERCE HONG KONG (BCCHK) WAS SUSPENDED BY THE COMMISSIONER OF BANKING ON JULY 8.
IN THE WAKE OF THE BCCHK INCIDENT, UNFOUNDED RUMOURS TRIGGERED SHORT-LIVED RUNS ON A HANDFUL OF BANKS WITH FOREIGN INTERESTS. BUT THE SITUATION QUICKLY STABILISED.
FOR THE BANKING SYSTEM AS A WHOLE, CUSTOMER DEPOSITS, IN RESPECT OF BOTH TOTAL DEPOSITS AND HONG KONG DOLLAR DEPOSITS, CONTINUED TO GROW DURING THE THIRD QUARTER,
SECONDLY, THE MARKET EXCHANGE RATE OF THE KONG KONG DOLLAR REMAINED STABLE AGAINST THE U.S. DOLLAR DURING THE THIRD QUARTER.
REFLECTING THE MOVEMENT OF THE U.S. DOLLAR, THE OVERALL, EXCHANGE VALUE OF THE HONG KONG DOLLAR, AS MEASURED BY THE EFFECTIVE EXCHANGE RATE INDEX, DECLINED FROM 114.1 AT THE END OF JUNE TO 111.9 AT THE END OF SEPTEMBER 1991.
THIRDLY, DOMESTIC LOANS AND ADVANCES INCREASED STRONGLY DURING THE 12 MONTHS ENDING SEPTEMBER 1991.
OVER THE SAME PERIOD, HK$M3, AS THE BROADEST DEFINITION OF TIE KONG DOLLAR MONEY SUPPLY, ROSE BY 12.2%. THIS WAS BROADLY COMPATIBLE WITH THE GROWTH RATE OF NOMINAL GDP.
HONG
FOURTHLY, STIMULATED BY THE ANNOUNCEMENT OF THE SINO-BRITISH MEMORANDUM OF UNDERSTANDING ON THE NEW AIRPORT AND RELATED PROJECTS IN EARLY JULY, THE HANG SENG INDEX ROSE TO A RECORD HIGH OF 4,079 ON AUGUST 14, BEFORE CONSOLIDATING TO AROUND 4,000 FOR THE REST OF THE THIRD QUARTER. THERE WAS ALSO A MARKED INCREASE IN NEW SHARE ISSUES.
ON FUTURES TRADING, FOLLOWING THE LAUNCHING OF THE COMMERCIAL AND INDUSTRIAL SUB-INDEX FUTURES IN THE SECOND QUARTER, PROPERTIES SUB-INDEX FUTURES WAS INTRODUCED IN THE THIRD QUARTER.
THE
THE GOVERNMENT ECONOMIST SAID IN REVIEWING THE GDP AND PRICE FORECASTS FOR 1991 IN THE LIGHT OF THESE DEVELOPMENTS, ADJUSTMENTS WERE MADE TO THE COMPONENT FORECASTS AS APPROPRIATE. THE UPDATED FORECASTS ARE SHOWN IN THE FOLLOWING TABLE.
/FORECAST FOR
Page 10Page 11