FRIDAY, MAY 28, 1993
FIRST, THE MARKET EXCHANGE RATE OF THE HONG KONG DOLLAR AGAINST
OF THE U.S. DOLLAR REMAINED STABLE DURING THE FIRST QUARTER
1993, MOVING WITHIN A NARROW RANGE OF 7.730 TO 7. 743. THIS
A REPRESENTED
RATE OF OF LESS THAN ONE PERCENTAGE POINT FROM THE LINKED DEVIATION HK$7.80 TO US$1.
SECONDLY, REFLECTING THE MOVEMENTS OF THE U.S. DOLLAR AGAINST HONG OTHER MAJOR CURRENCIES, THE EFFECTIVE EXCHANGE RATE INDEX OF THE
EARLY DOLLAR ROSE FROM 114.2 AT END-1992 TO 115.3 IN KONG
FEBRUARY, BEFORE FALLING BACK TO CLOSE THE QUARTER AT 113.4.
THE
U.S. THEIR
HONG KONG
LOCAL INTEREST RATES MOVED BROADLY IN LINE WITH
DEPOSIT DOLLAR COUNTERPART.
RATES ADMINISTERED BY ASSOCIATION OF BANKS REMAINED UNCHANGED.
DOLLAR MONEY
A
MARGINAL
SUPPLY
GROWTH
THIRDLY, THE GROWTH RATES OF BOTH HONG KONG DOLLAR DEPOSITS AND THE BROADER DEFINITIONS OF THE HONG KONG
DURING PICKED
THE FIRST QUARTER, AFTER ONLY UP DURING *THE PRECEDING QUARTER.
DOMESTIC LOANS RECORDED A STEADY INCREASE IN LINE WITH ECONOMIC ACTIVITY.
OVERALL
THIS WITHIN
TOTAL, LOANS TO PURCHASE
RESIDENTIAL
PROPERTY
CONTINUED TO SHOW ONLY A MODERATE RISE.
ΤΟ
FOURTHLY, IN THE LOCAL STOCK MARKET, THE HANG SENG INDEX RALLIED
A RECORD HIGH
BY OF 6,508 ON MARCH
SPURRED
THE GREATER OF FAVOURABLE CORPORATE RESULTS AND A ANNOUNCEMENT
OPTIMISM CONCERNING THE CONSTITUTIONAL DEVELOPMENT ISSUE.
THE HANG FROM
THERE WAS SOME CONSOLIDATION SINCE MID-MARCH, WITH SENG INDEX CLOSING THE FIRST QUARTER AT 6,389, GIVING A 16% GAIN THE LEVEL AT THE END OF 1992.
ON CONSUMER PRICE INFLATION, THE CONSUMER PRICE INDEX (A)
QUARTER OF BY 8.8% IN THE FIRST
1993 OVER A YEAR EARLIER. REPRESENTED A FURTHER EASING FROM THE 9.4% INCREASE RECORDED FOURTH QUARTER OF 1992.
ROSE
THIS
IN THE
MEASURING INFLATION ON A BROADER FRONT, THE RATE OF INCREASE IN
DEMAND DEFLATOR ALSO EASED, THE
IN FROM DOMESTIC
THE THIRD QUARTER TO 5.1% IN THE FOURTH QUARTER OF 1992.
7.9%
THIS WAS MAINLY DUE TO MORE MODERATE PRICE INCREASES MACHINERY AND EQUIPMENT AS WELL AS CONSTRUCTION OUTPUT.
THE GDP DEFLATOR HOWEVER RECORDED A FASTER INCREASE, IN THE THIRD QUARTER TO 10.3% IN THE FOURTH QUARTER OF 1992.
THIS WAS EXTERNAL SECTOR, PRICES.
FOR
FROM 9.4%
MOVEMENTS
IN
THE
MAINLY DUE
PRICE TO DIFFERENT WHERE IMPORT PRICES ROSE MORE SLOWLY THAN EXPORT
THE
A RESULT, AS
THE GDP DEFLATOR IN
FOURTH QUARTER TEMPORARILY LIFTED BY THE IMPROVEMENT IN THE TERMS OF TRADE.
/MR TANG
WAS