XN000022-1979-09-03 — Page 2

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MONDAY, SEPTEMBER 3, 1979

MONEY AND BANKING FIGURES FOR JULY

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THE MONEY SUPPLY AND BANKING FIGURES FOR JULY 1979 ARE PUBLISHED TODAY (MONDAY).

THEY SHOW THAT THE MONEY SUPPLY, ON ALL THREE DEFINITIONS, GREW LESS FAST IN JULY THAN IN JUNE, WHILE LOANS AND ADVANCES BY BANKS ROSE SLIGHTLY FASTER THAN IN JUNE, THOUGH THE LONGER-TERM RATE OF GROWTH IS STILL FALLING.

SINCE THE END OF JULY INTEREST RATES HAVE AGAIN BEEN RAISED, WHICH SHOULD FURTHER REDUCE THE RATE OF GROWTH OF LOANS AND ADVANCES.

MONEY SUPPLY

M 1, WHICH HAS BEEN MOVING VERY ERRATICALLY RECENTLY, ROSE BY 1.9 PER CENT, AGAINST 3.7 PER CENT IN JUNE.

M 2 ROSE BY 2.0 PER CENT, AGAINAT 2.9 PER CENT IN JUNE-

IT ROSE IN THE LAST THREE MONTHS AT AN ANNUAL RATE OF 23 PER CENT.

M 3 ROSE BY 1,8 PER CENT IN JULY, AGAINST 2.1 PER CENT IN JUNE, AND HAS RISEN IN THE LAST THREE MONTHS AT AN ANNUAL RATE OF NEARLY 26 PER CENT.

THE RELATIVELY SHARP RISE OF 3.6 PER CENT IN DEMAND DEPOSITS WITH BANKS MAY REFLECT THE ACTIVE STOCK MARKET AT THE END OF JULY, AND REPORTED INFLOWS OF INVESTMENT FUNDS FROM OVERSEAS.

BANKING FIGURES

BANK LOANS AND ADVANCES IN HONG KONG ROSE BY 3.1 PER CENT IN JULY, AGAINST 2.8 PER CENT IN JUNE. IN THE LAST THREE MONTHS THEY HAVE RISEN BY 6.9 PER CENT, THE LOWEST THREE-MONTHLY INCREASE SINCE OCTOBER 1977. THIS IS EQUIVALENT TO AN ANNUAL RATE OF 31 PER CENT, WHICH IS MUCH LOWER THAN THE 46 PER CENT INCREASE SHOWN FROM JULY 1978 TO JULY 1979.

BANKS' LENDING OVERSEAS, WHICH FELL BACK IN THE MIDDLE OF 1978, BUT HAS BEEN RISING IN RECENT MONTHS, GREW AGAIN IN JULY TO A RECORD LEVEL OF $20 261 MILLION ($19 066 MILLION).

BANKS' AVERAGE LIQUIDITY RATIO ROSE FURTHER FROM 48.8 PER CENT TO 49.2 PER CENT, AND THE RATIO OF LOANS IN HONG KONG TO DEPOSITS ALSO ROSE, FROM 84.1 PER CENT TO 84.6 PER CENT.

DEPOSIT-TAKING COMPANY FIGURES

LOANS AND ADVANCES IN HONG KONG BY DEPOSIT-TAKING COMPANIES ROSE BY 2.4 PER CENT IN JULY, DOWN FROM 3.2 PER CENT IN JUNE.

/LOANS AND .....