XN000022-1982-02-11 — Page 3

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MONEY SUPPLY

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NEW SERIES

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THURSDAY, FEBRUARY 11, 1982

THE MONEY SUPPLY ON THE BROADEST DEFINITIONS IN THE NEW SERIES ROSE IN DECEMBER, WITH M3 TOTAL UP BY 2.8 PER CENT AND HK$M3 UP BY THREE PER CENT, FOLLOWING THE INCREASES OF 0.8 PER CENT AND 0.4 PER CENT RESPECTIVELY IN NOVEMBER. THE PRINCIPAL FACTOR HERE WAS A 10.2 PER CENT INCREASE IN SAVINGS ACCOUNTS WITH BANKS, REFLECTING THE CREDITING OF HALF-YEARLY INTEREST TO DEPOSITORS. THERE WAS ALSO THE USUAL SEASONAL INCREASE IN THE CURRENCY IN CIRCULATION.

IN THE FOURTH QUARTER M3 TOTAL ROSE BY 5.2 PER CENT, COMPARED WITH A RISE OF 0.8 PER CENT IN THE THIRD QUARTER, WHILE HK$M3 ROSE BY 4.6 PER CENT, AFTER A FALL OF 0.4 PER CENT IN THE THIRD QUARTER.

LOANS FOR USE IN HONG KONG - NEW SERIES

LOANS BY BANKS AND DEPOSIT-TAKING COMPANIES FOR USE IN HONG KONG ROSE IN DECEMBER BY 4.1 PER CENT, AGAINST AN INCREASE OF 2.8 PER CENT IN NOVEMBER. IN THE FOURTH QUARTER, TOTAL LOANS FOR USE IN HONG KONG GREW BY 8.1 PER CENT, COMPARED WITH AN INCREASE OF 6.5 PER CENT IN THE PREVIOUS QUARTER.

LOANS BY BANKS FOR USE IN HONG KONG ROSE IN DECEMBER BY FOUR PER CENT, AFTER RISING BY THREE PER CENT IN NOVEMBER, AND LOANS BY DEPOSIT-TAKING COMPANIES ROSE BY 4.2 PER CENT, FOLLOWING A RISE OF 2.3 PER CENT IN THE PREVIOUS MONTH. IN THE FOURTH QUARTER, THE GROWTH RATE OF LOANS BY BANKS FOR USE IN HONG KONG, AT 7.3 PER CENT, WAS UP FROM THAT OF 4.7 PER CENT IN THE PREVIOUS QUARTER, BUT THE GROWTH OF LOANS BY DTCS FOR USE IN HONG KONG, AT 10 PER CENT, WAS DOWN FROM THAT OF 11.5 PER CENT IN THE THIRD QUARTER.

FOREIGN ASSETS

THE NET IDENTIFIABLE FOREIGN ASSETS OF ALL BANKS (CALCULATED FROM THE ORIGINAL SERIES OF STATISTICS) FELL IN DECEMBER BY $2 595 MILLION BUT THOSE OF DTCS ROSE BY $83 MILLION, INDICATING A NET OUTFLOW OF FUNDS FROM THE HONG KONG MONETARY SECTOR OF $2 512 MILLION, COMPARED WITH A NET OUTFLOW OF $1 256 MILLION IN THE PREVIOUS MONTH. IN THE FOURTH QUARTER THE NET OUTFLOW OF FUNDS FROM HONG KONG AMOUNTED TO $3 073 MILLION, AFTER A NET

INFLOW OF $1 840 MILLION IN THE THIRD QUARTER.

OVER THE WHOLE OF 1981 THERE WAS A NET OUTFLOW OF FUNDS TOTALLING $1 663 MILLION COMPARED WITH A NET OUTFLOW OF $4 396 MILLION IN 1980.

BALANCE SHEET RATIOS

THE AVERAGE LIQUIDITY RATIO (AS DEFINED IN S. 18 OF THE BANKING ORDINANCE) FOR ALL BANKS IN HONG KONG ROSE IN DECEMBER TO 55.5 PER CENT FROM 54.3 PER CENT IN NOVEMBER. THE RATIO OF THEIR LOANS FOR USE IN HONG KONG TO THEIR DEPOSITS FELL TO 99 PER CENT AT THE END OF DECEMBER FROM 99.7 PER CENT AT THE END OF NOVEMBER.

THE AVERAGE LIQUIDITY RATIO (AS DEFINED IN S. 24A OF THE DEPOS IT-TAKING COMPANIES ORDINANCE) FOR ALL DEPOSIT-TAK ING COMPANIES ROSE TO 46 PER CENT IN DECEMBER FROM 44.8 PER CENT IN NOVEMBER. THE RATIO OF THEIR LOANS FOR USE IN HONG KONG TO THEIR DEPOSITS ROSE TO 67.7 PER CENT AT THE END OF DECEMBER FROM 63.9 PER CENT AT THE END OF NOVEMBER.

/QUARTERLY ANALYSIS