XN000022-1980-01-07 — Page 8

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MONDAY, JANUARY 7, 1980

BANK LOANS IN HONG KONG

DTC LOANS IN HONG KONG

TOTAL CREDIT TO THE ECONOMY

LOANS AND ADVANCES TO CUSTOMERS

IN HONG KONG (OTHER THAN BANKS AND DEPOSIT-TAKING COMPANIES) BY LICENSED BANKS.

LOANS AND ADVANCES TO CUSTOMERS

IN HONG KONG (OTHER THAN BANKS AND DEPOSIT-TAKING COMPANIES) BY REGISTERED DEPOSIT-TAKING COMPANIES.

BANK LOANS IN HONG KONG, PLUS DEPOSIT-TAKING COMPANY LOANS

IN HONG KONG.

TABLE 1 SHOWS THE REVISED CALCULATIONS OF M1, M2 AND BANK LOANS IN HONG KONG, FOR EACH MONTH FROM DECEMBER 1978

TO NOVEMBER 1979. MORE DETAILED TABLES OF THE REVISED CALCULATIONS ARE AVAILABLE ON REQUEST TO THE MONETARY AFFAIRS BRANCH OF THE GOVERNMENT SECRETARIAT.

THE STATISTICS FOR NOVEMBER 1979

TABLE 2 (AT THE END OF THIS RELEASE) SETS OUT THE DETAILED STATISTICS FOR NOVEMBER 1979, WITH THE FIGURES FOR M1, M2 AND BANK LOANS IN HONG KONG REVISED AS DESCRIBED ABOVE. THEY SHOW A FALL IN THE MONTHLY INCREASE IN THE MONEY SUPPLY ON THE WIDEST DEFINITION (M3), DESPITE A SLIGHTLY FASTER INCREASE IN TOTAL CREDIT TO THE ECONOMY.

MONEY SUPPLY

M1 (REVISED) ROSE BY 1.8 PER CENT IN NOVEMBER, WHICH WAS SHARPLY DOWN ON ITS OCTOBER INCREASE OF 3.5 PER CENT: THIS

INDICATOR FELL QUITE SHARPLY IN THE EARLY MONTHS OF 1979, AND IS NOW STILL BELOW ITS END-DECEMBER 1978 LEVEL.

M2 (REVISED) ROSE BY 3.0 PER CENT IN NOVEMBER, UP FROM 2.1 PER CENT IN OCTOBER, BUT IT IS UP BY ONLY 9.8 PER CENT ON ITS END-DECEMBER LEVEL 10.7 PER CENT ANNUALISED).

M3 ROSE BY 2.4 PER CENT IN NOVEMBER, DOWN FROM ITS OCTOBER INCREASE OF 3.0 PER CENT IT IS NOW 24.6 PER CENT UP ON ITS END-DECEMBER LEVEL (26.8 PER CENT ANNUALISED). THIS IS CLOSELY IN LINE WITH THE FORECAST GROWTH RATE OF GDP AT CURRENT PRICES OF ABOUT 27 PER CENT IN 1979.

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