XN000022-1983-09-05 — Page 2

MONDAY, SEPTEMBER 5, 1983

MONETARY STATISTICS FOR JULY

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THERE WAS A CONTRACTION IN THE NARROWLY DEFINED MONEY SUPPLY (M1) IN JULY OF THIS YEAR, BUT THE BROADEST MEASURE (M3) DISPLAYED SUBSTANTIAL GROWTH, INCLUDING AN INCREASE IN THE HK$ COMPONENT FOR THE FIRST TIME IN SIX MONTHS, ACCORDING TO MONETARY STATISTICS FOR THE MONTH PUBLISHED TODAY.

TOTAL LOANS AND ADVANCES GREW MORE RAPIDLY IN JULY THAN IN JUNE. WITHIN THE TOTAL THERE WAS A FALL IN LENDING TO FINANCE HONG KONG'S VISIBLE TRADE, WHILE OTHER LENDING FOR USE IN HONG KONG CONTINUED TO EXPAND.

HONG KONG DOLLAR MONEY SUPPLY

THE HK$ MONEY SUPPLY ON THE NARROWEST DEFINITION, HK$M1, FELL BY 0.5 PER CENT IN JULY, FOLLOWING A RISE OF 1.4 PER CENT

IN JUNE.

HK$ MONEY SUPPLY ON THE BROADER DEFINITIONS, HK$M2 AND HK$M3, INCREASED BY 2.7 PER CENT AND 2.8 PER CENT RESPECTIVELY, FOLLOWING THE CORRESPONDING 1.3 PER CENT RISE AND 0.2 PER CENT FALL IN JUNE.

IN THE THREE MONTHS TO JULY, HK$M1 GREW BY 0.1 PER CENT, HK$M2 BY 3.4 PER CENT AND HK$M3 BY 1.5 PER CENT.

OVER TWELVE MONTHS, THE CORRESPONDING GROWTH RATES WERE 12.0 PER CENT, 16.4 PER CENT AND 4.8 PER CENT.

IF FOREIGN CURRENCY +SWAP+ DEPOSITS, WHICH SHOULD FOR MOST ANALYTICAL PURPOSES BE REGARDED AS HK$ DÉPOSITS, WERE INCLUDED IN THE HK$ MONEY SUPPLY SERIES, IT IS LIKELY THAT THE BROADER MEASURES, HK$M2 AND HK$M3, WOULD EXHIBIT CONSIDERABLY STRONGER GROWTH OVER THE PAST YEAR.

TOTAL MONEY SUPPLY

TOTAL M1 FELL BY 4.0 PER CENT IN JULY, FOLLOWING A RISE OF 5.9 PER CENT IN JUNE. TOTAL M2 AND TOTAL M3 INCREASED BY 2.8 PER CENT AND 2.9 PER CENT RESPECTIVELY, FOLLOWING INCREASES OF 2.8 PER CENT AND 1.9 PER CENT IN JUNE.

IN THE THREE MONTHS TO JULY, TOTAL M1, M2 AND M3 INCREASED BY 1.5 PER CENT, 8.1 PER CENT AND 6.9 PER CENT RESPECTIVELY.

OVER TWELVE MONTHS, THE CORRESPONDING GROWTH RATES WERE 10.8 PER CENT, 37.2 PER CENT AND 26.9 PER CENT.

DEPOSITS

HONG KONG DOLLAR DEPOSITS GREW BY 2.9 PER CENT IN JULY, FOLLOWING A FALL OF 0.1 PER CENT IN JUNE. AS INDICATED ABOVE, THIS WAS THE FIRST MONTHLY INCREASE SINCE JANUARY.

/FOREIGN CURRENCY