XN000022-1993-12-07 — Page 6

5

ESTATE ALSO

TUESDAY, DECEMBER 7, 1993

PROVIDED

RECREATIONAL

HE

LEARNED THAT THE FACILITIES SUCH AS COURTS BASKETBALL, MINI-SOCCER AND CHILDREN'S PLAYGROUND.

SQUASH, TABLE TENNIS,

RINK AND

FOR PLAYING VOLLEY BALL, A SKATING

FOUR

TOURING THE MODERNISED AND SELF-CONTAINED FUNG TAK COMMERCIAL CENTRE, MR PATTEN NOTED THE CONVENIENT SHOPPING FACILITIES AVAILABLE FOR THE 21,000 RESIDENTS OF THE ESTATE AND A NEARBY HOME OWNERSHIP COURT.

INJECTION OF ADDITIONAL LIQUIDITY INTO BANKING SYSTEM * * * * *

THE HONG KONG MONETARY AUTHORITY ADDITIONAL LIQUIDITY INTO THE BANKING SYSTEM.

(HKMA} HAS INJECTED

THE BALANCE OF HONGKONGBANK'S ACCOUNT MAINTAINED WITH THE EXCHANGE FUND WAS INCREASED FROM $3 BILLION ΤΟ $4 BILLION THIS (TUESDAY) MORNING.

A SPOKESMAN FOR HKMA SAID THE ADDITIONAL LIQUIDITY WAS INJECTED IN ORDER TO RELIEVE THE TIGHTNESS OF THE INTERBANK MARKET.

INTERBANK LIQUIDITY TIGHT IN LAST FEW DAYS

INTERBANK LIQUIDITY IN THE LAST FEW DAYS HAS BEEN TIGHT, MAINLY BECAUSE OF HEAVY INVESTOR INTEREST IN NEW SHARE ISSUES, A S POKESMAN FOR THE HONG KONG MONETARY AUTHORITY (HKMA) SAID TODAY (TUESDAY).

HE SAID THE TIGHTNESS WAS DUE PARTLY TO THE PROCESS OF RECYCLING OF FUNDS TIED UP,

ΤΟ

RELIEVE THE TIGHTNESS IN THE INTERBANK LIQUIDITY, THE HKMA INJECTED $1 BILLION INTO THE MARKET EARLY TODAY.

THE HEAVY SUBSCRIPTION TODAY RESULTED IN THE HKMA ALSO LENDING OVER $14 BILLION THROUGH THE LIQUIDITY ADJUSTMENT FACILITY (LAF) ΤΟ BANKS SHORT OF MONEY AND TAKING $18 BILLION FROM BANKS FINDING THEMSELVES WITH SURPLUS FUNDS LATE IN THE DAY.

AS

"THE LAF OPERATED BY THE HKMA ONCE AGAIN PERFORMED EXACTLY DESIGNED TO ASSIST BANKS TO MAKE LATE ADJUSTMENTS TO THEIR LIQUIDITY POSITIONS, AFTER THE CLOSE OF THE MONEY MARKET, THE SPOKESMAN SAID.

+

ALTHOUGH THE INTERBANK MARKET WAS TIGHT THROUGHOUT THE DAY, OVERNIGHT HONG KONG INTERBANK OFFER RATE CLOSED AT 3.5 PER CENT TO 4 PER CENT, WHICH IS BELOW THE OFFER RATE OF LAF.

THESE OPERATIONS

KNABLED THE EXCHANGE RATE TO REMAIN STABLE

THROUGHOUT THE DAY.

"THE BANKS OBVIOUSLY HAD DIFFICULTY TODAY IN POSITIONING THEIR LIQUIDITY IN FUNDING THE NEW SHARE ISSUE.

"THE HKMA WILL BE

CONCERNED," HE SAID.

REVIEWING THE MATTER WITH THE BANKS

0

ור

/6