XN000022-1981-08-01 — Page 5

SATURDAY, AUGUST 1, 1981

M3 (M2 PLUS PUBLIC DEPOSITS WITH DEPOSIT-TAKING COMPANIES) INCREASED BY 6.0 PER CENT IN JUNE, FOLLOWING AN INCREASE OF 5.6 PER CENT IN MAY, REFLECTING A RISE OF 9.2 PER CENT IN DEPOSITS WITH DEPOSIT-TAKING COMPANIES.

IN THE SECOND QUARTER OF THE YEAR, M1 ROSE BY 0.4 PER CENT, FOLLOWING A FALL OF 1.6 PER CENT IN THE FIRST QUARTER. IN THE SECOND QUARTER M2 ROSE BY 5.5 PER CENT AND M3 BY 12.6 PER CENT, COMPARED WITH THEIR RESPECTIVE INCREASES OF 5.8 PER CENT AND 7.3 PER CENT IN THE PREVIOUS QUARTER.

LOANS IN HONG KONG

TOTAL LOANS AND ADVANCES IN HONG KONG GREW BY 4.4 PER CENT IN JUNE, AFTER AN INCREASE OF 6.8 PER CENT IN MAY. IN THE SECOND QUARTER OF THE YEAR, TOTAL LOANS AND ADVANCES IN HONG KONG ROSE BY 12.8 PER CENT, AGAINST AN INCREASE OF 11.6 PER CENT RECORDED IN THE FIRST QUARTER.

BANK LOANS IN HONG KONG ROSE IN JUNE BY 3.4 PER CENT AND LOANS IN HONG KONG BY DEPOSIT-TAKING COMPANIES BY 7.4 PER CENT, DOWN FROM THE INCREASES OF 6.4 PER CENT AND 8.4 PER CENT IN MAY RESPECTIVELY.

IN THE SECOND QUARTER BANK LOANS IN HONG KONG EXPANDED BY 10.5 PER CENT AND LOANS IN HONG KONG BY DEPOSIT-TAKING COMPANIES BY 20.5 PER CENT, AFTER INCREASING BY 11.8 PER CENT AND 10.9 PER CENT RESPECTIVELY, IN THE PREVIOUS QUARTER.

FOREIGN ASSETS

THE NET IDENTIFIABLE FOREIGN ASSETS OF ALL BANKS ROSE IN JUNE BY $465 MILLION, AND THOSE OF DEPOSIT-TAKING COMPANIES BY $1 287 MILLION, INDICATING A NET INFLOW OF FUNDS INTO THE HONG KONG MONETARY SECTOR OF $1 752 MILLION, AFTER A NET INFLOW OF $298 MILLION IN THE PREVIOUS MONTH,

THE NET INFLOW OF FUNDS INTO HONG KONG IN THE SECOND QUARTER OF THE YEAR AMOUNTED TO $3 681 MILLION, AS COMPARED WITH A NET OUTFLOW OF $4 111 MILLION IN THE FIRST QUARTER.

BALANCE SHEET RATIOS

THE AVERAGE LIQUIDITY RATIO FOR ALL BANKS IN HONG KONG FELL IN JUNE TO 47.9 PER CENT FROM 49.4 PER CENT IN MAY. THE LOAN/DEPOSIT RATIO FELL TO 118.1 PER CENT AT THE END OF JUNE FROM 119.5 PER CENT AT THE END OF MAY, REFLECTING THE FAST GROWTH IN DEPOSITS WITH BANKS DURING THE MONTH.

THE AVERAGE LIQUIDITY RATIO FOR ALL DEPOSIT-TAKING COMPANIES ROSE IN JUNE TO 46.4 PER CENT FROM 45.9 PER CENT IN MAY. THE LOAN/DEPOSIT RATIO, HOWEVER, FELL TO 64.7 PER CENT AT THE END OF JUNE FROM 65.8 PER CENT AT THE END OF MAY.

QUARTERLY