XN000022-1985-05-30 — Page 10

DEPOSITS

9

THURSDAY, MAY 30, 1985

HONG KONG DOLLAR DEPOSITS ROSE FURTHER, BY 1.2 PER CENT IN APRIL, AFTER AN INCREASE OF 1.4 PER CENT IN MARCH. THESE DEPOSITS INCREASED BY 3.3 PER CENT OVER THE THREE MONTHS TO APRIL AND BY 19.3 PER CENT OVER THE 12 MONTHS.

FOREIGN CURRENCY DEPOSITS ALSO ROSE BY 1.2 PER CENT, FOLLOWING AN INCREASE OF 4.8 PER CENT IN THE PREVIOUS MONTH. THESE DEPOSITS WERE 8.0 PER CENT HIGHER OVER THE LATEST THREE MONTHS AND 23.5 PER CENT HIGHER OVER THE 12 MONTHS. PART OF THESE INCREASES WERE ATTRIBUTABLE TO THE CONTINUED INCREASE IN FOREIGN CURRENCY SWAP DEPOSITS.

THESE DEPOSITS, WHICH ARE BASICALLY HONG KONG DOLLAR DEPOSITS, INCREASED BY 2.0 PER CENT, FROM $24.6 BILLION AT THE END OF MARCH TO $25.1 BILLION AT THE END OF APRIL.

ADJUSTED TO INCLUDE SWAP DEPOSITS, HONG KONG DOLLAR DEPOSITS SHOWED HIGHER GROWTH RATES, AT 1.3 PER CENT IN APRIL AND 4.0 PER CENT OVER THREE MONTHS.

FOREIGN CURRENCY DEPOSITS, ON THE OTHER HAND, SHOWED LOWER GROWTH RATES AT 1.0 PER CENT AND 7.6 PER CENT OVER THE RESPECTIVE PERIODS AFTER SWAP DEPOSITS HAVE BEEN EXCLUDED.

TOTAL DEPOSITS WITH BANKS ROSE BY 1.3 PER CENT IN APRIL, * COMPARED WITH 2.7 PER CENT IN MARCH. TOTAL DEPOSITS WITH DEPOSIT-TAKING COMPANIES ALSO ROSE, BUT BY ONLY 0.5 PER CENT FOLLOWING A SIGNIFICANT RISE OF 4.5 PER CENT IN THE PREVIOUS MONTH.

OVER THE THREE MONTHS TO APRIL, THE GROWTH RATE OF TOTAL DEPOSITS WITH THE LATTER, AT 7.7 PER CENT, WAS STILL HIGHER THAN THAT WITH THE FORMER, AT 5.0 PER CENT, REFLECTING AT LEAST IN PART THE INFLUENCE OF THE SIGNIFICANT DIFFERENTIAL BETWEEN MONEY MARKET RATES AND HKAB RATES.

HONG KONG DOLLAR MONEY SUPPLY

A FURTHER POST LUNAR NEW YEAR AND EASTER REDUCTION IN THE PUBLIC'S HOLDING OF CASH CAUSED HONG KONG DOLLAR MONEY SUPPLY ON THE NARROWEST DEFINITION, HK$M1, TO FALL FURTHER BY 0.2 PER CENT IN APRIL, AFTER A SUBSTANTIAL DECLINE OF 5.7 PER CENT IN MARCH. HK$M2 AND HK$M3 (THE BROADER DEFINITIONS), HOWEVER, ROSE BY 0.9 PER CENT AND 1.0 PER CENT RESPECTIVELY.

THE CORRESPONDING INCREASES IN MARCH WERE 0.1 PER CENT AND 0.7 PER CENT,

/IN THE

Page 10Page 11