XN000022-1980-11-03 — Page 7

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MONDAY, NOVEMBER 3, 1980

MONEY SUPPLY

THE MONEY SUPPLY ON THE NARROWEST DEFINITION, M1 (NOTES AND COINS WITH THE PUBLIC, PLUS DEMAND DEPOSITS, OTHER THAN FROM BANKS AND DEPOSIT-TAKING COMPANIES, WITH LICENSED BANKS) ROSE BY 6.3 PER CENT IN SEPTEMBER, UP FROM A 3.1 PER CENT INCREASE IN AUGUST.

M2 (M1 PLUS SAVINGS AND TIME DEPOSITS, CTHER THAN FROM BANKS AND DEPOSIT-TAKING COMPANIES, WITH LICENSED BANKS) ROSE BY 2.8 PER CENT IN SEPTEMBER, LITTLE CHANGED FROM A 2.6 PER CENT RISE IN THE PREVIOUS MONTH.

M3 (M2 PLUS PUBLIC DEPOSITS WITH DEPOSIT-TAKING COMPANIES) ROSE BY 3.4 PER CENT IN SEPTEMBER, AFTER RISING BY 3.1 PER CENT

IN AUGUST.

IN THE THIRD QUARTER CF 1980, M1 ROSE BY 12.5 PER CENT, LITTLE CHANGED FROM ITS INCREASE OF 12.0 PER CENT IN THE SECOND QUARTER. BUT M2 ROSE BY 8.0 PER CENT IN THE THIRD QUARTER AND M3 BY 7.8 PER CENT, MUCH LESS THAT THE. INCREASES OF 16.3 PER CENT AND 11.7 PER CENT RESPECTIVEL: IN THE PREVIOUS QUARTER.

LOANS IN HONG KONG

TOTAL LOANS AND ADVANCES IN HONG KONG ROSE BY 4.9 PER CENT IN SEPTEMBER, AGAINST A 3.9 PER CENT RISE IN AUGUST. BUT IN THE THIRD QUARTER, TOTAL LOANS AND ADVANCES IN HONG KONG ROSE BY 10.3 PER CENT DOWN FROM A 11.9 PER CENT INCREASE IN THE SECOND QUARTER.

BANK LOANS IN HONG KONG POSE BY 4.8 PER CENT IN SEPTEMBER, AFTER AN INCREASE OF 4.1 PER CENT IN AUGUST. LOANS IN HONG KONG BY DEPOSIT-TAKING COMPANIES ROSE BY 5.0 PER CENT, UP FROM A RISË OF 3.3 PER CENT IN THE PREVIOUS MONTH.

THE GROWTH RATE OF BANK LOANS IN HONG KONG ROSE TO 9.4 PER CENT IN THE THIRD QUARTER FROV 5.8 PER CENT IN THE SECOND QUARTER, BUT THE GROWTH RATE OF LOANS IN HONG KONG BY DEPOSIT-TAKING COMPANIES FELL TO 13.0 PER CENT FROM 37.5 PER CENT IN THE SECOND QUARTER.

FOREIGN ASSETS

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THE NET IDENTIFIABLE FOREIGN ASSETS OF ALL BANKS FELL IN SEPTEMBER BY $2 038 MILLION, ILE THOSE OF DEPOSIT-TAKING COMPANIES ROSE BY $1 246 MILLION, SUGGESTING AN OUTFLOW OF FUNDS FROM THE HONG KONG MONETARY SECTOR OF $792 MILLION, WHICH WAS MUCH LARGER THAN AN OUTFLOW OF $10 MILLION IN THE PREVIOUS MONTH.

THE NET OUTFLOW OF FUNDS IN THE THIRD QUARTER OF 1980 AMOUNTED TO 3776 MILLION, AS COMPARED WITH A NET INFLOW OF $146 MILLION IN THE PREVIOUS QUARTER.