XN000022-1981-02-03 — Page 3

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TUESDAY, FEBRUARY 3, 1981

MONEY SUPPLY AND FINANCIAL STATISTICS

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THE MONEY SUPPLY AND FINANCIAL STATISTICS FOR DECEMBER 1980 ARE PUBLISHED TODAY (TUESDAY).

THE GROWTH OF THE MONEY SUPPLY (M3) AND OF TOTAL LOANS AND ADVANCES IN HONG KONG IN DECEMBER WAS PARTLY SEASONAL, REFLECTING THE INFLUENCES OF CHRISTMAS AND THE NEW YEAR, AND ALSO THE HALF-YEARLY CREDITING OF INTEREST ON SAVINGS DEPOSITS. AN INFLOW OF FUNDS INTO THE HONG KONG MONETARY SECTOR DURING THE MONTH ALSO CONTRIBUTED TO THE RISE IN THE MONEY SUPPLY. DEPOSITS WITH DEPOSIT-TAKING COMPANIES CONTINUED TO EXPAND, WHILE A SIGNIFICANT PROPORTION OF NEW LENDING BY BANKS WAS FINANCED BY THEIR INCREASED BORROWING FROM DEPOSIT-TAKING COMPANIES.

THE DETAILED FIGURES FOR DECEMBER 1980, AND COMPARISONS WITH PREVIOUS MONTHS, ARE SET OUT IN TABLE 1. TABLE 2 SETS OUT SOME FIGURES FROM THE QUARTERLY ANALYSIS OF LOANS AND ADVANCES IN HONG KONG BY SECTOR.

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) FELL BY 1.1 PER CENT IN DECEMBER, AFTER A FALL OF 4.6 PER CENT IN NOVEMBER.

M2 (M1 PLUS SAVINGS AND TIME DEPOSITS, OTHER THAN FROM BANKS AND DTCS, WITH LICENSED BANKS) ROSE BY 1.9 PER CENT IN DECEMBER, AFTER A 0.6 PER CENT FALL IN NOVEMBER.

M3 (M2 PLUS DEPOSITS WITH DEPOSIT-TAKING COMPANIES) INCREASED BY 4.1 PER CENT IN DECEMBER, UP FROM A 2.1 PER CENT RISE IN NOVEMBER. THE DECEMBER GROWTH REFLECTED A 9.4 PER CENT RISE IN DEPOSITS WITH DEPOSIT-TAKING COMPANIES.

IN THE FOURTH QUARTER OF 1980 M1 FELL BY 5.7 PER CENT WHILE M2 ROSE BY ONLY 1.3 PER CENT, SHARPLY REDUCED FROM THEIR INCREASES OF 12.5 PER CENT AND 8 PER CENT RESPECTIVELY IN THE THIRD QUARTER. IN THE FOURTH QUARTER M3 ROSE BY 8.7 PER CENT, AGAINST A 7.8 PER CENT INCREASE IN THE THIRD QUARTER.

LOANS IN HONG KONG

TOTAL LOANS AND ADVANCES IN HONG KONG ROSE BY 4 PER CENT IN DECEMBER, DOWN FROM A 6.3 PER CENT RISE IN NOVEMBER. IN THE FOURTH QUARTER OF 1980 TOTAL LOANS AND ADVANCES IN HONG KONG EXPANDED BY 16.7 PER CENT, SHARPLY UP FROM AN INCREASE CF 10.3 PER CENT IN THE THIRD QUARTER.

BANK LOANS IN HONG KONG ROSE BY 4.5 PER CENT IN DECEMBER AND LOANS IN HONG KONG BY DEPOSIT-TAKING COMPANIES BY 2.2 PER CENT, DOWN FROM THEIR RESPECTIVE INCREASES OF 6.6 PER CENT AND 5.7 PER CENT IN NOVEMBER. IN THE FOURTH QUARTER OF 1980 THE GROWTH RATE OF BANK LOANS IN HONG KONG ACCELERATED TO 18 PER CENT FROM 9.4 PER CENT IN THE PREVIOUS QUARTER, WHILE THE GROWTH RATE OF LOANS IN HONG KONG BY DEPOSIT-TAKING COMPANIES WAS ALMOST UNCHANGED IN THE FOURTH QUARTER AT 12.7 PER CENT, AS COMPARED WITH 13 PER CENT IN THE THIRD QUARTER.

/FOREIGN ASSETS