XN000022-1986-10-02 — Page 3

THURSDAY, OCTOBER 2, 1986

MONETARY STATISTICS FOR AUGUST RELEASED

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BOTH HONG KONG DOLLAR AND FOREIGN CURRENCY DEPOSITS GREW IN AUGUST, ACCORDING TO STATISTICS PUBLISHED BY THE MONETARY AFFAIRS BRANCH TODAY. THE GROWTH RATE OF FOREIGN CURRENCY DEPOSITS REMAINED HIGHER THAN THAT OF HONG KONG DOLLAR DEPOSITS.

HONG KONG DOLLAR M1 (THE NARROWEST DEFINITION OF MONEY SUPPLY) INCREASED RAPIDLY, AFTER A SLIGHT DECREASE IN THE PREVIOUS MONTH. HONG KONG DOLLAR M2 AND M3 CONTINUED TO GROW.

GROWTH IN TOTAL LOANS AND ADVANCES SLOWED DOWN IN AUGUST. LOANS TO FINANCE HONG KONG'S TRADE DECREASED BUT LOANS FOR USE IN HONG KONG CONTINUED TO INCREASE.

A TABLE WHICH WILL BE SENT BY FACSIMILE NETWORK AND ALSO BOXED FOR COLLECTION SETS OUT SUMMARY FIGURES FOR AUGUST 1986 AND COMPARISONS WITH EARLIER MONTHS.

DEPOSITS

IN AUGUST. HONG KONG DOLLAR DEMAND AND SAVINGS DEPOSITS INCREASED AFTER THE DECREASE RECORDED IN JULY, BUT TIME DEPOSITS FELL BY 3.7 PER CENT. TOTAL HONG KONG DOLLAR DEPOSITS GREW BY 1.0 PER CENT AFTER AN INCREASE OF 1.1 PER CENT LAST MONTH. OVER THE YEAR, THEY GREW BY 9.4 PER CENT.

FOREIGN CURRENCY DEPOSITS GREW FASTER IN AUGUST, BY 3.4 PER CENT AFTER INCREASES OF 1.5 PER CENT AND 3.0 PER CENT IN JUNE AND JULY. OVER THE YEAR, THE GROWTH RATE WAS 35.0 PER CENT.

FOREIGN CURRENCY SWAP DEPOSITS DECREASED BY 5.1 PER CENT IN AUGUST. ADJUSTED TO INCLUDE THESE DEPOSITS, HONG KONG DOLLAR DEPOSITS GREW BY 0.2 PER CENT IN AUGUST AND BY 11.0 PER CENT OVER THE YEAR ADJUSTED FOREIGN CURRENCY DEPOSITS GREW BY 4.5 PER CENT IN AUGUST AND BY 36.3 PER CENT OVER THE PREVIOUS TWELVE MONTHS.

DEPOSITS (ALL CURRENCIES) WITH BANKS INCREASED BY 2.7 PER CENT IN AUGUST WHILE THOSE WITH DEPOSIT-TAK ING COMPANIES INCREASED BY 0.4 PER CENT. OVER THE YEAR, THE FORMER GREW BY 28.4 PER CENT WHILE THE LATTER FELL BY 2.8 PER CENT.

HONG KONG DOLLAR MONEY SUPPLY

DUE TO THE INCREASE IN DEMAND DEPOSITS, HONG KONG DOLLAR MONEY SUPPLY M1 ROSE RAPIDLY IN AUGUST, BY 7.2 PER CENT, AFTER A DECREASE OF 0.9 PER CENT IN JULY, HK$M2 AND HK$M3 CONTINUED TO GROW, BY 1.4 PER CENT AND 1.1 PER CENT RESPECTIVELY, OVER THE YEAR, HK$M1 GREW BY 13.1 PER CENT, HK$M2 BY 14.1 PER CENT AND HK$M3 BY 10.5 PER CENT.

/TOTAL MONEY