XN000022-1982-12-02 — Page 6

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THURSDAY, DECEMBER 2, 1982

MONEY SUPPLY AND FINANCIAL STATISTICS: OCTOBER 1982

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DESPITE RUMOURS TO THE CONTRARY, THE OCTOBER MONEY SUPPLY FIGURES REVEAL THAT THERE WAS NO SIGNIFICANT SHIFT OUT OF HONG KONG DOLLAR DEPOSITS, NOR ANY OVERALL SWITCH INTO FOREIGN CURRENCY DEPOSITS. THE LEVEL OF HONG KONG DOLLAR DEPOSITS AT THE END OF OCTOBER WAS ONLY MARGINALLY BELOW THAT AT THE END OF SEPTEMBER, WHILE THE INCREASE IN THE HONG KONG DOLLAR VALUE OF FOREIGN CURRENCY DEPOSITS DURING THE MONTH WAS NO MORE THAN THAT WHICH WOULD HAVE OCCURRED SOLELY AS A RESULT OF THE DEPRECIATION OF THE HONG KONG DOLLAR AGAINST THE U.S. DOLLAR, THE CURRENCY IN WHICH MOST FOREIGN CURRENCY DEPOSITS ARE DENOMINATED.

MONEY SUPPLY ON ALL DEFINITIONS GREW AT SLOWER RATES THAN IN SEPTEMBER IN FACT, SMALL DECREASES WERE RECORDED IN THE HONG KONG DOLLAR COMPONENTS, WHILE THE FOREIGN CURRENCY COMPONENTS INCREASED SIGNIFICANTLY.

THIS IS INDICATED IN THE MONEY SUPPLY AND FINANCIAL STATISTICS FOR OCTOBER 1982 PUBLISHED TODAY.

THE RELATIVE SHIFT IN DEPOSITS FROM DEPOSIT-TAKING COMPANIES TO BANKS CONTINUED, ALTHOUGH ON A MORE MODEST SCALE THAN IN PREVIOUS MONTHS.

THERE APPEARS TO HAVE BEEN SOME UPTURN IN LOANS TO FINANCE THE VISIBLE TRADE OF HONG KONG, WHILE OTHER LENDING OUTSTANDING FOR USE IN HONG KONG CONTINUED TO EXPAND SIGNIFICANTLY.

THE ATTACHED TABLE SETS OUT SUMMARY FIGURES FOR OCTOBER 1982 AND COMPARISONS WITH EARLIER MONTHS.

HONG KONG DOLLAR MONEY SUPPLY

THE HK$ MONEY SUPPLY, ON THE NARROWEST DEFINITION, M1 FELL BY ONE PER CENT IN OCTOBER AFTER RISING BY 5.3 PER CENT

IN SEPTEMBER, HK$M2 FELL BY 0.3 PER CENT IN OCTOBER, AND HK$M3 BY 0.6 PER CENT, COMPARED WITH INCREASES OF 4.2 PER CENT AND 1.2 PER CENT RESPECTIVELY IN THE PREVIOUS MONTH.

IN THE THREE MONTHS TO OCTOBER HK$M1 ROSE BY 6.0 PER CENT, HK$M2 BY 11.0 PER CENT AND HK$M3 BY 3.5 PER CENT. IN THE TWELVE MONTHS TO OCTOBER, THE CORRESPONDING GROWTH RATES WERE 11.3 PER CENT, 31.8 PER CENT AND 4.4 PER CENT.

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