XN000022-1981-02-03 — Page 4

FOREIGN ASSETS

TUESDAY, FEBRUARI 3, 1981

THE NET IDENTIFIABLE FOREIGN ASSETS OF ALL BANKS FELL FURTHER IN DECEMBER BY $1 232 MN, BUT THOSE OF DTCS ROSE BY ANOTHER $1 808 MN, INDICATING A NET INFLOW OF FUNDS INTO THE HONG KONG MONETARY SECTOR OF $576 MN, AS COMPARED WITH AN OUTFLOW OF $2 771 MN IN THE PREVIOUS MONTH. THE NET OUTFLOW OF FUNDS FROM HONG KONG IN THE FOURTH QUARTER OF 1980 AMOUNTED TO $3 977 MN, AFTER A NET OUTFLOW OF $776 MN IN THE PREVIOUS QUARTER.

BALANCE SHEET RATIOS

THE

THE AVERAGE LIQUIDITY RATIO FOR ALL BANKS IN HONG KONG ROSE IN DECEMBER TO 48.4 PER CENT FROM 48.2 PER CENT IN NOVEMBER. LOAN/DEPOSIT RATIO ROSE FURTHER TO 107.3 PER CENT AT THE END OF DECEMBER FROM 104.7 PER CENT AT THE END OF NOVEMBER, REFLECTING THE EXPANSION IN BANK LOANS IN THE MONTH.

THE AVERAGE LIQUIDITY RATIO FOR ALL DTCS FELL FURTHER TO 44.2 PER CENT IN DECEMBER FROM 46.6 PER CENT IN NOVEMBER. THE LOAN/DEPOSIT RATIO AT THE END OF DECEMBER ALSO FELL TO 68.6 PER CENT FROM 73.5 PER CENT AT THE END OF NOVEMBER, REFLECTING THE RAPID GROWTH IN DEPOSITS WITH DTCS DURING THE MONTH.

QUARTERLY ANALYSIS OF LENDING IN HONG KONG BY SECTOR

IN THE FOURTH QUARTER OF 1980, LOANS TO THE MANUFACTURING SECTOR ROSE BY 8.9 PER CENT, WELL UP FROM A 1.6 PER CENT RISE IN THE THIRD QUARTER. LOANS TO THE BUILDING AND CONSTRUCTION SECTOR EXPANDED BY 26.3 PER CENT, AFTER RISING BY 25.9 PER CENT IN THE THIRD QUARTER, LOANS TO THE TRANSPORT AND TRANSPORT EQUIPMENT SECTOR ROSE BY 1.3 PER CENT IN THE FOURTH QUARTER, AFTER A FALL OF 3.1 PER CENT IN THE THIRD QUARTER.

BORROWING BY INDIVIDUALS TO PURCHASE RESIDENTIAL PROPERTY GREW BY 15.8 PER CENT IN THE FOURTH QUARTER, UP FROM AN INCREASE OF 10.3 PER CENT IN THE THIRD QUARTER. BORROWING BY INDIVIDUALS FOR OTHER PURPOSES ROSE BY 3.1 PER CENT IN THE FOURTH QUARTER, SHARPLY REDUCED FROM A 20.4 PER CENT RISE IN THE THIRD QUARTER.

NUMBER OF REPORTING INSTITUTIONS

THE NUMBER OF REPORTING BANKS REMAINED UNCHANGED IN DECEMBER AT 113. THE NUMBER OF REPORTING DEPOSIT-TAKING COMPANIES ROSE BY ANOTHER 2 DURING THE MONTH TO 302.

TABLE 1