XN000022-1993-09-08 — Page 4

WEDNESDAY, SEPTEMBER 8, 1993

BANKING TRANSACTIONS WITH CHINA

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THERE DOES NOT APPEAR ΤΟ HAVE BEEN ANY SIGNIFICANT REPATRIATION OF FUNDS TO CHINA IN JULY, ACCORDING TO A RECENT SURVEY CONDUCTED BY THE HONG KONG MONETARY AUTHORITY (HKMA).

THE SURVEY COVERS 24 AUTHORISED INSTITUTIONS BUSINESS WITH CHINA.

WITH SIGNIFICANT

IT INCLUDES INFORMATION ABOUT DEPOSITS FROM, CHINESE BANKS AND NON-BANKS.

AND LENDING TO,

IT ALSO COVERS LOANS TO LOCAL AND FOREIGN INSTITUTIONS FOR USE IN CHINA.

GIVEN THAT THIS IS A NEW SURVEY AND THAT THE REPORTING IS NOT COMPLETE, IT IS NOT APPROPRIATE TO QUOTE PRECISE FIGURES. HOWEVER, THE MAIN POINTS TO EMERGE FROM THE SURVEY ARE:

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DEPOSITS BY CHINESE BANKS WITH THE FELL SLIGHTLY IN JULY AFTER THE SHARP QUARTER;

BORROWING BY CHINESE BANKS FROM THE ROSE MARGINALLY; AND

SURVEYED INSTITUTIONS RISE IN THE SECOND

INSTITUTIONS

SURVEYED

JULY

DEPOSITS BY CHINESE NON-BANK ENTITIES ACTUALLY ROSE IN THOUGH THERE WERE SIGNS THAT THESE ENTITIES ALSO INCREASED THEIR BORROWING FROM THE SURVEYED INSTITUTIONS.

"THE RESULTS OF THE SURVEY NEED TO BE TREATED WITH CAUTION," THE ACTING CHIEF EXECUTIVE OF THE HKMA, MR DAVID CARSE, SAID TODAY (WEDNESDAY).

"BUT THE RESULTS DO NOT INDICATE THAT THE TIGHTENING MEASURES ANNOUNCED IN CHINA AT THE BEGINNING OF JULY HAVE SO FAR RESULTED IN ANY MARKED OUTFLOW OF FUNDS FROM HONG KONG."

"THIS IS CONSISTENT WITH THE STABLE PERFORMANCE OF THE HONG KONG DOLLAR SINCE THE BEGINNING OF JULY AND THE RECENT STRENGTH OF THE STOCK MARKET AND PROPERTY MARKET, MR CARSE ADDED.

TT

HE NOTED, HOWEVER, THAT THE MEASURES BY THE CHINESE AUTHORITIES WOULD TAKE SOME TIME TO SHOW THEIR FULL EFFECTS AND THAT THE HKMA WOULD CONTINUE TO MONITOR THE IMPACT ON THE FINANCIAL SYSTEM IN HONG KONG, INCLUDING THROUGH THE CONTINUED USE OF ITS MONTHLY SURVEY.

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