XN000022-1986-02-03 — Page 6

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MONDAY, FEBRUARY 3, 1986

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+THERE ARE CURRENTLY QUITE A NUMBER OF SITES BEING DEVELOPED IN KOWLOON BAY AND SIGNS THAT THIS AREA WILL SHORTLY BECOME A MUCH SOUGHT AFTER LOCATION FOR INDUSTRIALISTS WITH ITS CLOSE PROXIMITY TO A SKILLED WORKFORCE AND TO THE AIRPORT AND CONTAINER TERMINAL, HE SAID,

THERE WAS CURRENTLY A STRONG INDICATION THAT MANY OF THE INDUSTRIAL SITES WERE BEING PURCHASED BY END USERS, GENUINE INDUSTRIALISTS RATHER THAN PROPERTY DEVELOPERS.

PRICES OBTAINED FOR THREE INDUSTRIAL SITES SOLD AT A RECENT AUCTION, WHICH HE UNDERSTOOD WERE PURCHASED BY GENUINE INDUSTRIALIST, INDICATED A STEADY, CONFIDENT LONG-TERM INVESTMENT

FOR INDUSTRIAL UNDERTAKINGS IN HONG KONG, DESPITE THE THREAT OF PROTECTIONISM AND THE DROP IN DOMESTIC EXPORTS.

MR POPE SAID PROPERTY VALUES HAD RALLIED AND, INDEED. INCREASED SOMEWHAT OVER THE YEAR OF THE OX AND THERE WERE SIGNS OF RENEWED CONFIDENCE AND LONG-TERM STABILITY.

+THE PROSPECTS FOR THE COMING YEAR OF THE TIGER ARE LOOKING GOOD, MR POPE SAID.

+ SINCERELY HOPE THAT PROPERTY DEVELOPERS AND FINANCE INSTITUTIONS, WHO ARE THE BACKBONE OF THE PROPERTY MARKET, HAVE LEARNED THE IR LESSONS FROM THE PROPERTY BOOM IN 1981 AND ĪTS SUBSEQUENT CRASH AND WILL CONTINUE WITH THE STEADY, RESPONSIBLE APPROACH THEY SHOWED THIS YEAR.

+SOOTHSAYERS HAVE PREDICTED THAT THE YEAR OF THE TIGER COMBINED WITH THE PASSING OF HALLEY'S COMET WOULD SEE A DIFFICULT YEAR FOR HONG KONG, BUT IT IS MY VIEW THAT THE PROPERTY MARKET IN HONG KONG HAS SHOWED TREMENDOUS STRENGTH AND MATURITY IN PULLING OUT OF THE BAD RECESSION AND I TRUST AND BELIEVE THIS WILL CONTINUE INTO THE YEAR OF THE TIGER, HE CONCLUDED,

MONETARY STATISTICS FOR DECEMBER 1985 ****

BOTH HONG KONG DOLLAR AND FOREIGN CURRENCY DEPOSITS GREW FASTER IN DECEMBER THAN IN NOVEMBER, ACCORDING TO MONETARY STATISTICS PUBLISHED TODAY (MONDAY).

THE GROWTH IN FOREIGN CURRENCY DEPOSITS CONTINUED TO BE FASTER THAN THAT IN HONG KONG DOLLAR DEPOSITS, REFLECTING AT LEAST IN PART A FURTHER INCREASE IN FOREIGN CURRENCY SWAP DEPOSITS, AS THE DIFFERENTIAL BETWEEN MONEY MARKET RATES AND THE HKAB DEPOSIT RATES WIDENED.

/MONEY SUPPLY