XN000022-1984-08-31 — Page 4

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FRIDAY, AUGUST 31, 1984

FOR COMPANIES INCORPORATED IN HONG KONG

TOTAL ASSETS, LESS CONTRA ITEMS, OF AT LEAST HK$2 500 MILLION AND DEPOSITS FROM THE PUBLIC (1.E. EXCLUDING THOSE FROM BANKS, DTCS OR

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CONNECTED PARTIES) OF AT LEAST HK$1 750 MILLION.

A GOVERNMENT SPOKESMAN NOTED THAT THERE WAS A SUBSTANTIAL INCREASE IN THE THRESHOLDS FOLLOWING THE 1982 REVIEW WHEN THE CRITERIA WERE LAST REVISED, AND THAT THE U.S. DOLLAR HAS STRENGTHENEJ SIGNIFICANTLY AGAINST MOST OTHER CURRENCIES SINCE THEN.

KEEPING THE THRESHOLD AT THESE LEVELS WOULD MAINTAIN THE QUALITY, IN TERMS OF SIZE, OF POTENTIAL APPLICANTS, HE SAID.

REGARDLESS OF WHERE THE THRESHOLD IS SET, ASSUMING IT IS NOT ACTUALLY LOWERED, THE NUMBER OF FOREIGN APPLICANTS WILL TEND TO DWINDLE NOW THAT THE SURGE AFTER THE LIFTING OF THE MORATORIUM IN 1981 HAS PASSED, HE ADDED.

HE EXPLAINED THAT THE SIZE CRITERIA ARE ONLY A PRE-CONDITION FOR APPLICATIONS TO BE CONSIDERED. THERE ARE OTHER LICENSING CRITERIA, SUCH AS RECIPROCITY AND ADEQUATE HOME COUNTRY SUPERVISION, AND UNDER THE BANK ING ORDINANCE THE GOVERNOR-IN-COUNCIL HAS COMPLETE DISCRETION OVER THE GRANTING OF BANKING LICENCES.

JULY MONEY SUPPLY DECLINES

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BOTH THE HONG KONG DOLLAR MONEY SUPPLY AND THE TOTAL MONEY SUPPLY DECLINED ON ALL DEFINITIONS IN JULY, REFLECTING MAINLY A DECREASE IN HONG KONG DOLLAR DEPOSITS WITH THE MONETARY SECTOR, ACCORDING TO MONETARY STATISTICS PUBLISHED TODAY.

LOANS AND ADVANCES TO FINANCE VISIBLE TRADE CONTINUED TO GROW AT A MODERATE RATE OTHER LOANS FOR USE IN HONG KONG AGAIN REGISTERED ONLY A MARGINAL INCREASE.

(A TABLE SETTING OUT SUMMARY FIGURES FOR JULY AND COMPARISONS WITH EARLIER MONTHS, WILL BE TRANSMITTED BY FACSIMILE NETWORK AND ALSO BOXED FOR COLLECTION.)

/DEPOSITS