XN000022-1983-11-04 — Page 5

FRIDAY, NOVELLER 4, 1983

TOTAL MONEY SUPPLY

TOTAL M1 GREW BY 0.9 PER CENT FOLLOWING A 3.4 PER CENT RISE IN AUGUST.

TOTAL M2 AND TOTAL M3 AGAIN INCREASED RAPIDLY, BY 3.8 PER CENT AND 3.7 PER CENT RESPECTIVELY. THE CORRESPONDING INCREASES IN AUGUST WERE 3.1 PER CENT AND 2.9 PER CENT.

AS NOTED ABOVE, THESE FIGURES WERE HEAVILY INFLUENCED BY THE VALUATION EFFECT OF THE HONG KONG DOLLAR'S DEPRECIATION.

IN THE THREE MONTHS TO SEPTEMBER, TOTAL M1 GREW BY A MARGINAL 0.2 PER CENT.

IN CONTRAST, TOTAL M2 AND TOTAL M3 GREW BY 10.0 PER CENT AND 9.9 PER CENT RESPECTIVELY.

OVER THE TWELVE MONTHS, TOTAL M1 GREW BY 6.6 PER CENT, TOTAL M2 BY 29.9 PER CENT AND TOTAL M3 BY 25.1 PER CENT.

DEPOSITS

FOLLOWING A FALL OF 0.1 PER CENT IN AUGUST, HONG KONG DOLLAR DEPOSITS FELL FURTHER BY 1.0 PER CENT.

IN THE THREE MONTHS TO SEPTEMBER, THEY ROSE BY 1.8 PER CENT BUT OVER THE TWELVE MONTHS, THEY FELL BY 0.9 PER CENT.

DURING THE MONTH THERE WAS A SMALL SHIFT OF BANK DEPOSITS FROM HONG KONG DOLLAR INTO FOREIGN CURRENCY, BUT MOST OF THE 8.2 PER CENT INCREASE IN FOREIGN CURRENCY DÉPOSITS REFLECTED THE VALUATION EFFECT ARISING FROM THE SUBSTANTIAL DEPRECIATION OF THE HONG KONG DOLLAR DURING SEPTEMBER.

OVER THE THREE MONTHS TO SEPTEMBER, FOREIGN CURRENCY DEPOSITS ROSE BY 19.1 PER CENT AND OVER THE TWELVE MONTHS, BY 66.1 PER CENT.

LOANS AND ADVANCES

TOTAL LOANS AND ADVANCES EXTENDED BY BANKS AND DEPOSIT-TAKING COMPANIES ROSE BY 5.5 PER CENT AFTER A RISE OF 2.2 PER CENT IN AUGUST.

PART OF THE RISE IN THE TOTAL REPRESENTED THE HIGHER HONG KONG DOLLAR VALUE OF THE FOREIGN CURRENCY COMPONENT, WHICH GREW BY 9.9 PER CENT.

HONG KONG DOLLAR LOANS, WHICH ACCOUNT FOR HALF OF THE TOTAL, GREW BY 1.4 PER CENT FOLLOWING A RISE OF 0.1 PER CENT IN AUGUST.

WHILE HONG KONG DOLLAR LOANS TO FINANCE VISIBLE TRADE GREW ONLY MARGINALLY, BY 0.5 PER CENT, FOREIGN CURRENCY LOANS FOR THIS PURPOSE GREW BY 12.2 PER CENT.

OTHER LOANS FOR USE IN HONG KONG WHICH ARE DENOMINATED IN HONG KONG DOLLARS GREW BY 1.5 PER CENT, WHILE THOSE DENOMINATED IN FOREIGN CURRENCIES GREW BY 12.5 PER CENT.

QUARTERLY ANALYSIS