XN000022-1983-02-08 — Page 2

TUESDAY, FEBRUARY 8, 1983

DECEMBER MONEY SUPPLY AND FINANCIAL STATISTICS

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THERE WAS A LARGE SHIFT OF FOREIGN CURRENCY DEMAND DEPOSITS INTO TIME DEPOSITS DURING DECEMBER LAST YEAR, ACCORDING TO MONEY SUPPLY AND FINANCIAL STATISTICS FOR THE MONTH PUBLISHED TODAY (TUESDAY).

AS A RESULT, TOTAL MONEY SUPPLY ON THE NARROWEST DEFINITION MI FELL, DESPITE THE USUAL INCREASE BEFORE THE NEW YEAR IN THE HONG KONG DOLLAR CASH HOLDING BY THE PUBLIC.

THE YEAR-END CREDITING OF INTEREST TO SAVINGS DEPOSITS RESULTED IN A SUBSTANTIAL INCREASE IN THE WIDER DEFINITION OF THE MONE Y SUPPLY M2, AND TO A LESSER EXTENT IN M3.

AFTER INCREASING IN NOVEMBER FOR THE FIRST TIME IN NINE MONTHS, DEPOSITS WITH DEPOSIT-TAKING COMPANIES DECREASED AGAIN IN DECEMBER WHILE THOSE WITH BANKS INCREASED. BOTH TOTAL HONG KONG DOLLAR DEPOSITS AND TOTAL FOREIGN CURRENCY DEPOSITS GREW, WITH THE LATTER GROWING AT A FASTER RATE.

TOTAL LOANS AND ADVANCES CONTINUED TO INCREASE IN DECEMBER, LOANS TO FINANCE HONG KONG'S VISIBLE TRADE IN PARTICULAR RECORDED THE HIGHEST MONTHLY INCREASE SINCE MAY 1981.

TABLE 1 (ATTACHED) SETS OUT SUMMARY FIGURES FOR DECEMBER 1982 AND COMPARISONS WITH EARLIER MONTHS. TABLE 2 (ALSO ATTACHED) SETS OUT SOME FIGURES FROM THE QUARTERLY ANALYSIS OF LOANS AND ADVANCES FOR USE IN HONG KONG BY SECTOR.

HONG KONG DOLLAR MONEY SUPPLY

THE HK DOLLAR MONEY SUPPLY ON ALL DEFINITIONS ROSE IN DECEMBER. HK$M1 ROSE BY 4.1 PER CENT, AFTER FALLING BY 0.1 PER CENT IN NOVEMBER. THE INCREASE REFLECTS THE NORMAL SEASONAL PATTERN AT THE TURN OF THE YEAR, WITH NOTES AND COINS IN THE HANDS OF THE PUBLIC INCREASING BY 5.4 PER CENT. AS INTEREST WAS PAID INTO SAVINGS DEPOSITS, HK$M2 AND HK$M3 ALSO ROSE BY 2.6 PER CENT AND 1.8 PER CENT RESPECTIVELY, COMPARED WITH THE CORRESPONDING FALLS BY ONE PER CENT AND 0.5 PER CENT IN NOVEMBER.

IN THE THREE MONTHS TO DECEMBER HK$M1 ROSE BY THREE PER CENT, HK$M2 BY 1.3 PER CENT AND HK$M3 BY 0.7 PER CENT. IN THE TWELVE MONTHS TO DECEMBER, THE CORRESPONDING GROWTH RATES WERE 10 PER CENT, 25 PER CENT AND 2.3 PER CENT.

TOTAL MONEY