XN000022-1983-12-02 — Page 10

FRIDAY, DECEMBER 2, 1983

OCTOBER MONETARY STATISTICS

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MONETARY STATISTICS FOR OCTOBER 1983 ARE PUBLISHED TODAY.

PROBABLY AS A CONSEQUENCE OF THE MEASURES TAKEN ON

OCTOBER 17 TO STABILISE THE EXCHANGE VALUE OF THE HONG KONG DOLLAR, THERE WAS A SIGNIFICANT INCREASE IN HONG KONG DOLLAR DEPOSITS.

FOREIGN CURRENCY DEPOSITS FELL, REFLECTING BOTH THE VALUATION EFFECT ARISING FROM THE EXCHANGE RATE HAVING BEEN STABILISED AT A STRONGER LEVEL AND A MODEST SWITCH BACK INTO HONG KONG DOLLAR DEPOSITS.

HONG KONG DOLLAR MONEY SUPPLY INCREASED ON ALL DEFINITIONS.

HOWEVER, THE BROADER DEFINITIONS OF TOTAL MONEY SUPPLY, THAT IS TOTAL M2 AND TOTAL M3, DECREASED BECAUSE OF THE CONTRACTION IN THE FOREIGN CURRENCY COMPONENTS.

TOTAL LOANS AND ADVANCES FELL IN OCTOBER. WITHIN THIS TOTAL, HOWEVER, HONG KONG DOLLAR LOANS TO FINANCE VISIBLE TRADE SHOWED SOME INCREASE.

(A STATISTICAL TABLE GIVING A SUMMARY OF THE MONETARY STATISTICS IS ATTACHED)

HONG KONG DOLLAR MONEY SUPPLY

THE NARROWEST DEFINITION OF HONG KONG DOLLAR MONEY SUPPLY, HKM$1, ROSE FURTHER BY 0.7 PER CENT IN OCTOBER, COMPARED WITH 0.9 PER CENT IN SEPTEMBER.

THIS REFLECTED AN INCREASE IN HK$ DEMAND DEPOSITS OFFSETTING A FALL IN THE PUBLIC'S HOLDING OF NOTES AND COINS.

THE HONG KONG DOLLAR MONEY SUPPLY ON THE BROADER DEFINITIONS, HK$M2 AND HK$M3, ROSE BY 0.9 PER CENT AND 3.1 PER CENT RESPECTIVELY, REVERSING THE CORRESPONDING FALLS OF 0.3 PER CENT AND 0.5 PER CENT RECORDED IN SEPTEMBER.

IN THE THREE MONTHS TO OCTOBER, HK$M1 ROSE BY 4.6 PER CENT, HK$M2 BY 2.5 PER CENT AND HK$M3 BY 2.6 PER CENT. OVER THE TWELVE MONTHS, THE CORRESPONDING GROWTH RATES WERE 10.6 PER CENT, 7.5 PER CENT AND 3.9 PER CENT.

TOTAL MONEY SUPPLY

TOTAL M1 CONTINUED TO INCREASE, BY 1.1 PER CENT, FOLLOWING A RISE OF 0.9 PER CENT IN SEPTEMBER.

TOTAL M2 AND TOTAL M3, HOWEVER, FELL BY 2.5 PER CENT AND 1.7 PER CENT RESPECTIVELY, UNDER THE INFLUENCE OF THE VALUATION EFFECT ARISING FROM A STRONGER HONG KONG DOLLAR, IN CONTRAST TO THE CORRESPONDING INCREASES OF 3.8 PER CENT AND 3.7 RECORDED IN SEPTEMBER.

/IN THE

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