XN000022-1983-10-06 — Page 4

THURSDAY, OCTOBER 6, 1963

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HONG KONG DOLLAR MONEY SUPPLY

HK DOLLAR MONEY SUPPLY ON THE NARROWEST DEFINITION, HK$M1, ROSE BY 3 PER CENT FOLLOWING A FALL OF 0.5 PER CENT IN JULY. AS REGARDS THE BROADER DEFINITIONS, HK$M2 INCREASED BY 1.9 PER CENT WHILE HK$M3 REMAINED UNCHANGED. THE CORRESPONDING GROWTH RATES IN JULY WERE 2.7 PER CENT AND 2.8 PER CENT.

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IN THE THREE MONTHS TO AUGUST HK$M1 GREW BY 3.9 PER CENT, HK$M2 BY 6 PER CENT AND HK$M3 BY 2.6 PER CENT. OVER THE TWELVE MONTHS, THE CORRESPONDING GROWTH RATES WERE 13.5 PER CENT, 11.1 PER CENT AND 1.8 PER CENT. IF FOREIGN CURRENCY +SWAP+ DEPOSITS, WHICH SHOULD FOR MOST ANALYTICAL PURPOSES BE REGARDED AS HK$ DEPOSITS, 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 DISPLAYED ITS USUAL VOLATILITY, RECORDING AN INCREASE OF 3.4 PER CENT IN AUGUST, FOLLOWING A DECREASE OF 4 PER CENT IN JULY. TOTAL M2 AND TOTAL M3 EXPERIENCED STEADY GROWTH. THE FORMER ROSE BY 3 .1 PER CENT FOLLOWING A RISE OF 2.8 PER CENT IN JULY, WHILE THE LATTER GREW BY 2.9 PER CENT, THE SAME AS IN JULY.

IN THE THREE MONTHS TO AUGUST, TOTAL M1, M2 AND M3 INCREASED BY 5.1 PER CENT, 9 PER CENT AND 8 PER CENT RESPECTIVELY, OVER THE TWELVE MONTHS, THE CORRESPONDING GROWTH RATES WERE 12.4 PER CENT, 33 PER CENT AND 25.5 PER CENT.

DEPOSITS

HK DOLLAR DEPOSITS FELL MARGINALLY BY 0.1 PER CENT IN AUGUST FOLLOWING A RISE, THE FIRST SINCE JANUARY, OF 2.9 PER CENT IN JULY. THERE WAS A RELATIVE SHIFT OF SUCH DEPOSITS FROM DEPOSIT-TAKING COMPANIES TO BANKS. HONG KONG DOLLAR DEPOSITS WITH DEPOSIT-TAKING COMPANIES FELL BY 10.1 PER CENT IN AUGUST BUT THOSE WITH BANKS INCREASED BY 2 PER CENT. IN THE THREE MONTHS TO AUGUST. HONG KONG DOLLAR DEPOSITS INCREASED BY 2.7 PER CENT. OVER THE TWELVE MONTHS, THESE INCREASED BY ONLY 0.9 PER CENT.

FOREIGN CURRENCY DEPOSITS GREW BY 6.4 PER CENT, COMPARED WITH A RISE OF 3.4 PER CENT IN JULY. ADJUSTING FOR THE VALUATION EFFECT ARISING FROM THE DEPRECIATION OF THE HONG KONG DOLLAR DURING THE MONTH, THE INCREASE IN AUGUST WAS ABOUT 2.5 PER CENT, WITH THE INCREASE OCCURRING MAINLY WITH DEPOSIT-TAKING COMPANIES.

IN THE THREE MONTHS TO AUGUST, FOREIGN CURRENCY DEPOSITS INCREASED BY 15 PER CENT. OVER THE TWELVE MONTHS, THESE INCREASED BY 67.4 PER CENT. AS EXPLAINED BEFORE, THESE GROWTH RATES INCLUDE THE VALUATION EFFECT AND WOULD ALSO BE LESS RAPID IF SWAP DEPOSITS WERE EXCLUDED.

/DEPOSITS HELD .....................