XN000022-1981-04-04 — Page 7

SATURDAY, ARRTL 4, 1981

AS THE FINANCIAL SECRETARY POINTED OUT IN PARAGRAPH 32 OF HIS BUDGET SPEECH, OUR MONETARY STATISTICS DO NOT YET PROVIDE A BASIS FOR REALLY MEANINGFUL ECONOMIC ANALYSIS. THE GOVERNMENT IS HOWEVER NOT YET IN A POSITION TO PUBLISH ON A REGULAR BASIS THE STATISTICS WHICH ARE NOW BEING COLLECTED UNDER THE MONETARY STATISTICS ORDINANCE.

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 11.2 PER CENT IN FEBRUARY, AFTER HAVING RISEN BY 10.3 PER CENT IN JANUARY. THE FEBRUARY OUTTURN REFLECTED A SEASONAL FALL OF 9.7 PER CENT IN THE TOTAL OF NOTES AND COINS HELD BY THE PUBLIC AFTER THE LUNAR NEW YEAR, AND ALSO A REDUCTION OF 12.2 PER CENT IN DEMAND DEPOSITS WITH LICENSED BANKS.

M2 (M1 PLUS SAVINGS AND TIME DEPOSITS, OTHER THAN FROM BANKS AND DTCS, WITH LICENSED BANKS) FELL BY 1.4 PER CENT IN FEBRUARY, AFTER A 6.1 PER CENT RISE IN JANUARY.

M3 (M2 PLUS DEPOSITS WITH DEPOSIT-TAKING COMPANIES) ROSE BY 0.9 PER CENT IN FEBRUARY, WELL DOWN FROM AN INCREASE OF 4.9 PER CENT IN JANUARY.

IN THE LAST THREE MONTHS M1 FELL BY 3.2 PER CENT, COMPARED WITH A 1.3 PER CENT RISE IN THE PREVIOUS THREE MONTHS. BUT THE GROWTH RATES OF M2 AND M3 IN THE LAST THREE MONTHS AT, RESPECTIVELY, 6.5 PER CENT AND 10.2 PER CENT, WERE UP FROM THE IR INCREASES OF 2.2 PER CENT AND 8.0 PER CENT IN THE PREVIOUS THREE MONTHS.

LOANS IN HONG KONG

TOTAL LOANS AND ADVANCES IN HONG KONG EXPANDED BY 2.3 PER CENT IN FEBRUARY, WELL DOWN FROM A 6.0 PER CENT RISE IN JANUARY. IN THE LAST THREE MONTHS, TOTAL LOANS AND ADVANCES IN HONG KONG ROSE BY 12.7 PER CENT, MUCH LESS THAN AN INCREASE OF 17.7 PER CENT IN THE PREVIOUS THREE MONTHS. THIS MAY BE PARTLY DUE TO THE LEVEL OF INTEREST RATES IN HONG KONG HAVING RESTRAINED THE DEMAND FOR CREDIT.

BANK LOANS IN HONG KONG INCREASED BY 2.5 PER CENT IN FEBRUARY, AFTER A RISE OF 6.2 PER CENT IN JANUARY. LOANS IN HONG KONG BY DEPOSIT-TAKING COMPANIES ROSE BY 1.6 PER CENT IN FEBRUARY, AFTER RISING BY 5.6 PER CENT IN JANUARY. IN THE LAST THREE MONTHS, BANK LOANS IN HONG KONG GREW BY 13.7 PER CENT AND LOANS IN HONG KONG BY DEPOSIT-TAKING COMPANIES BY 9.6 PER CENT. WELL DOWN FROM THE INCREASES OF 18.4 PER CENT AND 15.8 PER CENT RESPECTIVELY IN THE PREVIOUS THREE MONTHS.

/FCHEIGHT ASSECS