XN000022-1983-07-06 — Page 2

WEDNESDAY, JULY 6, 1983

1

GOVERNOR TO GIVE PRESS CONFERENCE

*****

THE GOVERNOR, SIR EDWARD YOUDE AND THE UNOFFICIAL MEMBERS OF THE EXECUTIVE COUNCIL WILL RETURN FROM LONDON ON FLIGHT CX 200, ETA 9 AM ON THURSDAY (JULY 7).

SIR EDWARD WILL GIVE A PRESS CONFERENCE WITH SIR S.Y. CHUNG ON THE IR ARRIVAL AT THE VIP PRESS CONFERENCE ROOM.

PLEASE ADVISE THOSE COVERING THE EVENT TO ASSEMBLE IN THE PRESS ROOM ON THE GROUND FLOOR OF THE ARRIVAL HALL NOT LATER THAN 7.30 AM. GIS OFFICERS WILL THEN ESCORT NEWSMEN TO THE VIP PRESS CONFERENCE ROOM ON THE FIRST FLOOR.

MONETARY STATISTICS FOR MAY 1983

XXXXX

THERE CONTINUED TO BE SOME SHIFT OUT OF HONG KONG DOLLAR DEPOSITS TO FOREIGN CURRENCY DEPOSITS DURING MAY, ACCORDING TO MONETARY STATISTICS FOR THE MONTH PUBLISHED TODAY.

WITH THE EXCEPTION OF DEMAND DEPOSITS WITH BANKS, ALL OTHER HONG KONG DOLLAR DEPOSITS WITH BANKS AND DEPOSIT-TAKING COMPANIES FELL. BY CONTRAST, FOREIGN CURRENCY DEPOSITS INCREASED SUBSTANTIALLY, ALTHOUGH PART OF THE INCREASE REFLECTED THE VALUATION EFFECT OF THE DEPRECIATION OF THE HONG KONG DOLLAR OVER THE MONTH.

(THE MONETARY STATISTICS ARE PRESENTED IN HONG KONG DOLLARS, REPORTING INSTITUTIONS HAVING CONVERTED FOREIGN CURRENCY AMOUNTS AT THE RELEVANT EXCHANGE RATE ON THE REPORTING DAY.)

REFLECTING THESE CHANGES, AND A DROP IN THE PUBLIC'S HOLDING OF NOTES AND COINS, HONG KONG DOLLAR MONEY SUPPLY ON ALL DEFINITIONS FELL AND TOTAL MONEY SUPPLY ON THE BROADER DEFINITIONS (TOTAL M2 AND TOTAL M3) RECORDED SOME INCREASE.

THERE WAS HEALTHY GROWTH IN TOTAL LOANS AND ADVANCES IN MAY. LOANS FOR FINANCING HONG KONG'S VISIBLE TRADE GREW SUBSTANTIALLY ALONG WITH THE RECOVERY IN EXPORTS. GROWTH OF OTHER LOANS FOR USE IN HONG KONG WAS, HOWEVER, RELATIVELY MODERATE.

AS THE END OF THE TWO-YEAR TRANSITIONAL PERIOD FOR THE ESTABLISHMENT OF THE THREE-TIER MONETARY SYSTEM DREW NEAR, THERE WAS DURING THE MONTH A FURTHER SHIFT OF DEPOSITS AWAY FROM REGISTERED DEPOSIT-TAKING COMPANIES.

HONG KONG