XN000022-1985-01-02 — Page 2

WEDNESDAY, JANUARY 2, 1985

NOVEMBER MONETARY STATISTICS RELEASED

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HONG KONG DOLLAR DEPOSITS WITH FINANCIAL INSTITUTIONS GREW SHARPLY IN NOVEMBER, ACCORDING TO MONETARY STATISTICS PUBLISHED TODAY (WEDNESDAY).

PART OF THE INCREASE APPEARED TO REFLECT A SWITCH FROM FOREIGN CURRENCY DEPOSITS, WHICH DECLINED DURING THE MONTH.

BOTH THE HONG KONG DOLLAR MONEY SUPPLY AND THE TOTAL MONEY SUPPLY ROSE ON ALL DEFINITIONS.

LENDING REMAINED QUITE WEAK OVERALL, ALTHOUGH FOREIGN CURRENCY LOANS, PARTICULARLY THOSE FOR USE IN HONG KONG, RECORDED A DISTINCT INCREASE.

DEPOSITS

HONG KONG DOLLAR DEPOSITS CONTINUED TO RISE, FOR THE FOURTH CONSECUTIVE MONTH. THE INCREASE IN NOVEMBER WAS 4.9 PER CENT, COMPARED WITH 2.5 PER CENT IN OCTOBER, OVER THE THREE MONTHS TO NOVEMBER, THESE DEPOSITS ROSE BY 9.0 PER CENT, AND OVER THE 12 MONTHS, BY 26.9 PER CENT.

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FOREIGN CURRENCY DEPOSITS, HOWEVER, FELL BY 1.6 PER CENT IN NOVEMBER, AGAINST AN INCREASE OF 2.4 PER CENT IN THE MONTH BEFORE. WHILE THESE DEPOSITS SHOWED NO GROWTH OVER THE THREE MONTHS, THEY WERE 23.7 PER CENT HIGHER OVER THE 12 MONTHS.

TOTAL DEPOSITS WITH BANKS REGISTERED THE FOURTH CONSECUTIVE MONTHLY INCREASE, RISING BY 2.3 PER CENT IN NOVEMBER, COMPARED WITH 3.1 PER CENT IN OCTOBER. TOTAL DEPOSITS WITH DEPOSIT- TAKING COMPANIES, HOWEVER, DROPPED BY 0.5 PER CENT AFTER A MARGINAL INCREASE OF 0.1 PER CENT IN THE PREVIOUS MONTH. OVER THE THREE MONTHS TO NOVEMBER, DEPOSITS WITH BANKS ROSE BY 6.4 PER CENT WHILE THOSE WITH DEPOSIT-TAKING COMPANIES FELL BY 2.0 PER CENT. THIS SHIFT IS PROBABLY EXPLAINED AT LEAST IN PART, BY THE UNUSUALLY NARROW DIFFERENTIAL BETWEEN MONEY MARKET INTEREST RATES AND HKAB DEPOSIT RATES FOR MUCH OF THIS PERIOD.

HONG KONG DOLLAR MONEY SUPPLY

HONG KONG DOLLAR MONEY SUPPLY ON ALL DEFINITIONS CONTINUED TO RISE.

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