XN000022-1994-09-30 — Page 11

FRIDAY, SEPTEMBER 30, 1994

HAD

9

MONETARY STATISTICS FOR AUGUST 1994

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THE LATEST RISE IN HONG KONG DOLLAR INTEREST RATES HAS NOT YET ANY MARKED DAMPENING EFFECT ON CREDIT DEMAND, STATISTICS PUBLISHED TODAY (FRIDAY) BY THE HONG KONG MONETARY AUTHORITY SHOWS.

MEANWHILE, NON-U.S. DOLLAR FOREIGN CURRENCY DEPOSITS REBOUNDED FOR THE FIRST TIME SINCE MARCH 1994.

STIMULATED BY THE LATEST ROUND OF INTEREST RATE RISE, HONG KONG TIME DOLLAR DEPOSITS PICKED UP MOMENTUM, RISING BY 2.4% IN AUGUST AFTER A BRIEF EASING IN JULY.

AT THE SAME TIME, SWAP DEPOSITS CONTINUED THEIR STRONG SURGE IN RECENT MONTHS, INCREASING BY 3.5%.

SOME OF THE RISE IN HONG KONG DOLLAR TIME DEPOSITS CAME FROM SAVINGS DEPOSITS, WHICH FELL BY 1.1% IN AUGUST.

BY CONTRAST, HONG KONG DOLLAR DEMAND DEPOSITS REVERSED THEIR DECLINE IN JULY. THE MARKED REBOUND OF 5.3% IN AUGUST REFLECTED IN PART A MODEST REVIVAL IN STOCK MARKET ACTIVITIES TOWARDS THE END OF THE MONTH.

AFTER SUCCESSIVE DECLINES, NON-U.S. DOLLAR FOREIGN CURRENCY DEPOSITS REGISTERED AN APPRECIABLE GROWTH OF 2.3% IN AUGUST FOR THE FIRST TIME SINCE MARCH 1994. U.S. DOLLAR DEPOSITS CONTINUED TO GROW IN AUGUST, BUT AT A MODERATE PACE OF 1.2%.

THE GROWTH OF TOTAL OUTSTANDING LOANS AND ADVANCES EXTENDED AUTHORISED INSTITUTIONS PICKED UP SLIGHTLY TO 0.9% IN AUGUST.

BY

THE ANNUAL GROWTH REMAINED STABLE AT 12.3% AT THE END AUGUST, SAME AS THAT AT END-JULY.

OF

IT APPEARED THAT THE RISE IN LOCAL LENDING RATES ON AUGUST 22 HAS NOT YET HAD ANY MARKED DAMPENING IMPACT ON CREDIT DEMAND.

LOANS TO FINANCE VISIBLE TRADE CONTINUED TO MODERATE. THEY GREW BY 1.4% IN AUGUST COMPARED TO 1.9% IN JULY AND 3.9% IN JUNE.

HOWEVER, THE GROWTH OF OTHER LOANS FOR USE IN HONG KONG HAS OUT FROM ITS 0.5% RISE IN JULY TO REGISTER A 1.1% GROWTH IN

BOTTOMED AUGUST.

NOTWITHSTANDING A MARKED INCREASE IN HONG KONG DOLLAR DEMAND DEPOSITS IN AUGUST, THE ANNUAL GROWTH OF HK$M1 WAS TRENDING DOWNWARDS TO REACH A LOW OF 5.4%.

THE

RISING INTEREST RATES HAD DAMPENED THE DEMAND FOR NON-

INTEREST-BEARING MONEY BALANCES,

AND

WITH STABLE CREDIT EXPANSION BY AUTHORISED INSTITUTIONS, HK$M2 HK$M3 RECORDED STEADY INCREASES OF 1.3% AND 1.2% RESPECTIVELY IN

AUGUST.

YEAR, THE ANNUAL

COMPARED WITH THE MONTH-END FIGURES LAST GROWTH RATES OF HK$M2 AND HK$M3 HAD BEEN FAIRLY STABLE IN THE PAST SIX MONTHS, RANGING FROM 20% TO 26%.

FOR FURTHER PRESS ENQUIRES, PLEASE CONTACT THE PRESS AND PUBLICATIONS SECTION, HONG KONG MONETARY AUTHORITY, ON TEL 878 8261.

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