XN000022-1986-07-04 — Page 5

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JULY 4, 1986

FRIDAY, JULY 4

TAKING ACCOUNT OF SWAP DEPOSITS, HONG KONG DOLLAR DEPOSITS TOTALLED HK$249 BILLION AT THE END OF MAY. GROWTH DURING THE THREE MONTHS TO MAY WAS 1.6 PER CENT AND DURING THE 12 MONTHS TO MAY WAS 8.9 PER CENT.

FOREIGN CURRENCY DEPOSITS TOTALLED AN EQUIVALENT OF HK$267 BILLION AT THE END OF MAY, OR HK$237 BILLION EXCLUDING SWAP DEPOSITS. THERE WAS AN INCREASE IN MAY OF 2 PER CENT.

IN THE THREE MONTHS TO MAY FOREIGN CURRENCY DEPOSITS GREW BY 4.6 PER CENT AND OVER THE 12 MONTHS BY 37.8 PER CENT. EXCLUDING SWAP DEPOSITS THE CORRESPONDING INCREASES WERE 3.3 PER CENT AND 40.3 PER CENT.

FOREIGN CURRENCY SWAP DEPOSITS CONTINUED TO INCREASE, 2.3 PER CENT AFTER AN INCREASE OF 10.8 PER CENT IN APRIL.

BY

IN THE THREE MONTHS TO MAY, DEPOSITS (ALL CURRENCIES) WITH BANKS ROSE BY 4.9 PER CENT WHILE THOSE WITH DEPOSIT-TAKING COMPANIES FELL BY 8.8 PER CENT, OVER THE 12 MONTHS, THE GROWTH RATES WERE 25.8 PER CENT FOR BANKS AND 6.5 PER CENT FOR DEPOSIT- TAKING COMPANIES.

HONG KONG DOLLAR MONEY SUPPLY

HONG KONG DOLLAR MONEY SUPPLY ON ALL DEFINITIONS FELL, DUE TO THE UNUSUAL INCREASE IN THESE AGGREGATES IN APRIL. IN THE THREE MONTHS TO MAY, HOWEVER, HK$M2 GREW BY 1.7 PER CENT WHILE HK$M1 AND HK$M3 FELL BY 0.8 PER CENT AND 0.5 PER CENT RESPECTIVELY.

AFTER ADJUSTING FOR SWAP DEPOSITS, BOTH HK$M2 AND HK$M3 INCREASED IN THE THREE MONTHS TO MAY, BY 3.4 PER CENT AND 1.1 PER CENT RESPECTIVELY.

TOTAL MONEY SUPPLY

TOTAL MONEY SUPPLY FELL ON ALL DEFINITIONS, AGAIN REFLECTING THE UNUSUAL INCREASE IN APRIL, OVER THE THREE MONTHS TO MAY, TOTAL M2 AND TOTAL M3 INCREASED BY 4.3 PER CENT AND 2.1 PER CENT RESPECTIVELY WHILE TOTAL M1 FELL BY 2 PER CENT.

/LOANS AND