XN000022-1985-10-31 — Page 4

THURSDAY, OCTOBER 31, 1985

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FOREIGN CURRENCY SWAP DEPOSITS REVERSED THE RECENT

FALL TO REGISTER AN INCREASE OF 1.5 PER CENT IN SEPTEMBER COMPARED WITH A DECLINE OF 4.9 PER CENT IN AUGUST. ADJUSTED FOR THESE DEPOSITS, HONG KONG DOLLAR DEPOSITS ROSE BY 0.2 PER CENT IN SEPTEMBER BUT FELL BY 0.1 PER CENT IN THE THREE MONTHS TO SEPTEMBER; FOREIGN CURRENCY DEPOSITS, ON THE OTHER HAND, GREW AT 1.9 PER CENT IN SEPTEMBER AND 11.9 PER CENT IN THE THREE MONTHS TO SEPTEMBER.

TOTAL DEPOSITS WITH BANKS AND DEPOSIT-TAK ING COMPANIES INCREASED AT 1.1 PER CENT AND 0.6 PER CENT RESPECTIVELY IN SEPTEMBER. THE CORRESPONDING GROWTH RATES IN AUGUST WERE 1.8 PER CENT AND 1.2 PER CENT. IN THE THREE MONTHS TO SEPTEMBER. THE GROWTH OF TOTAL DEPOSITS WITH BANKS, AT 4.9 PER CENT, WAS LOWER THAN THAT WITH DEPOSIT-TAKING COMPANIES, AT 6.0 PER CENT; BUT OVER TWELVE MONTHS, THE GROWTH OF DEPOSITS WITH BANKS, AT 28.3 PER CENT, WAS SIGNIFICANTLY HIGHER THAN THAT WITH DEPOSIT-TAKING COMPANIES, AT 10.7 PER CENT.

HONG KONG DOLLAR MONEY SUPPLY

HONG KONG DOLLAR MONEY SUPPLY ON ALL DEFINITIONS

GREW FURTHER. HK$M1 (THE NARROWEST DEFINITION) ROSE BY 2.7 PER CENT, HK$M2 BY 0.3 PER CENT AND HK$M3 BY 0.4 PER CENT IN SEPTEMBER. THE CORRESPONDING INCREASES IN AUGUST WERE 2.2 PER CENT 0.8 PER CENT AND 0.6 PER CENT. IN THE THREE MONTHS TO SEPTEMBER. HK$M1 GREW BY 7.1 PER CENT, HK$M2 AND HK$M3 BY THE SAME RATE, AT 1.7 PER CENT; OVER TWELVE MONTHS, THE CORRESPONDING INCREASES WERE 36.9 PER CENT, 25.2 AND 19.8 PER CENT.

AFTER ADJUSTING FOR SWAP DEPOSITS, HK$M2 AND HK$M3 GREW SLIGHTLY HIGHER, BY 0.4 PER CENT AND 0.5 PER CENT RESPECTIVELY IN SEPTEMBER. IN THE THREE MONTHS TO SEPTEMBER, THE CORRESPONDING GROWTH RATES WERE 0.8 PER CENT AND 0.9 PER CENT.

TOTAL MONEY SUPPLY

TOTAL MONEY SUPPLY ON ALL DEFINITIONS CONTINUED TO RISE IN SEPTEMBER. TOTAL M1 INCREASED BY A RAPID 3.5 PER CENT, TOTAL M2 BY 1.2 PER CENT AND TOTAL M3 BY 1.1 PER CENT. THE CORRESPONDING GROWTH RATES IN AUGUST WERE 2.8 PER CENT, 1.9 PER CENT AND 1.8 PER CENT. IN THE THREE MONTHS TO SEPTEMBER, TOTAL M1 GREW BY 7.8 PER CENT, TOTAL M2 BY 5.1 PER CENT AND' TOTAL M3 BY 5.3 PER CENT, OVER TWELVE MONTHS, THE CORRESPONDING GROWTH RATES WERE 36.1 PER CENT, 28.3 PER CENT AND 24.9 PER CENT.

LOANS AND ADVANCES

LOANS AND ADVANCES EXTENDED BY BANKS AND DEPOSIT-TAK ING COMPANIES INCREASED MODESTLY BY 0.2 PER CENT, FOLLOWING THE INCREASE OF 0.1 PER CENT IN AUGUST. IN THE THREE MONTHS TO SEPTEMBER THESE GREW BY 0.3 PER CENT AND OVER TWELVE MONTHS BY 5.3 PER CENT. LOANS DENOMINATED IN HONG KONG DOLLAR INCREASED BY 0.8 PER CENT, WHILE LOANS DENOMINATED IN FOREIGN CURRENCIES FELL BY 0.3 PER CENT IN SEPTEMBER. IN THE THREE MONTHS TO SEPTEMBER, THE FORMER GREW BY 1.0 PER CENT WHILE THE LATTER FELL BY 0.5 PER CENT.

WITHIN THE