XN000022-1991-02-06 — Page 14

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WEDNESDAY, FEBRUARY 6, 1991

"BEFORE APPLYING ANY ADJUSTMENT, THE SHARE OF THE U.S. IN

IN HONO QUESTION REACHED KONG'S DOMESTIC EXPORTS OVER THE 10-YEAR SPAN IN

A

HIGH OF 44.5 PER CENT IN 1984.

"SINCE THEN, THERE HAS BEEN A STEADY AND MARKED DECLINE TO 32.2 PER CENT IN 1989. THE FIGURE FOR 1990 WAS 29.4 PER CENT.

"THESE FIGURES SHOW THAT ALTHOUGH THE U.S. IS STILL THE LARGEST RELATIVE IMPORTANCE HAS MARKET FOR HONG KONG'S DOMESTIC EXPORTS ITS BECOME LESS PRONOUNCED IN MORE RECENT YEARS,

HE EXPLAINED

THAT

ו

HE SAID.

AFTER ADJUSTMENT FOR OUTWARD PROCESSING TRADE THE SHARE OF THE U.S. IN HONG KONG'S DOMESTIC EXPORTS SINCE 1988 - WHEN THE GOVERNMENT BEGAN TO COLLECT STATISTICS ON HONG KONG 9 OUTWARD PROCESSING TRADE WITH CHINA HAD LIKEWISE BEEN FALLING.

-

THE FIGURE WAS 38.3 PER CENT FOR 1988, 37.6 PER CENT AND 35 PER CENT FOR 1990.

FOR 1989

EXCHANGE FUND TO 19SUE 364-DAY BILLS

WITH THE ADVICE OF THE EXCHANGE FUND ADVISORY COMMITTEE, THE FINANCIAL SECRETARY HAS APPROVED THE ISSUE OF 364-DAY RXCHANGE FUND BILLS IN ADDITION TO THE 91-DAY AND 182-DAY BILLS WHICH WERE LAUNCHED IN MARCH AND OCTOBER LAST YEAR.

THE PROPOSAL HAS THE FULL SUPPORT OF THE EXCHANGE FUND BILLS MARKET COMMITTEE AND THE HONG KONG CAPITAL MARKETS ASSOCIATION,

"THE EXCHANGE FUND BILLS PROGRAMME HAS BERN OPERATING WELL AND I AM VERY PLEASED WITH THE WAY IT HAS DEVELOPED," THE SECRETARY FOR MONETARY AFFAIRS, MR DAVID NENDICK, SAID TODAY (WEDNESDAY).

AN

"IT HAS SUCCESSFULLY ACHIEVED OUR OBJECTIVE OF CREATING ADDITIONAL MONEY MARKET INSTRUMENT TO ASSIST IN MAINTAINING BXCHANGB RATE STABILITY,' HE SAID.

ALL THE SYSTEMS AND PROCEDURES FOR TENDER, ISSUE, REDEMPTION, TRADING AND TRANSFER OF 91-DAY AND 182-DAY BILLS WILL BE USED FOR THE 364-DAY BILLS AS WELL.

INITIALLY, UP TO $200 MILLION OF 364-DAY BILLS WILL BE ISSUED ONCE EVERY FOUR WEEKS AND IN ADDITION TO THAT, THE EXCHANGE FUND WILL OF HOLD $60 MILLION IN ITS RESERVE FOR EACH ISSUE TO MEET THE DEMANDS MARKET MAKERS.

THE

FREQUENCY AND SIZE OF ISSUES WILL BE KEPT UNDER REVIEW AND ADJUSTED IF NECESSARY IN THE LIGHT OF ACTUAL MARKET RESPONSES.

THE FIRST TENDER FOR 364-DAY BILLS IS SCHEDULED FOR 26 FOR ISSUE ON FEBRUARY 27.

FEBRUARY

/TENDERS ARE