XN000022-1994-11-30 — Page 12

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WEDNESDAY, NOVEMBER 30, 1994

FOREIGN CURRENCY SWAP DEPOSITS, A SUBSTITUTE FOR SMALL-SIZED HONG KONG DOLLAR TIME DEPOSITS BEFORE THE REMOVAL OF INTEREST RATE CAPS, WHICH HAD BEEN GROWING RAPIDLY DURING RECENT MONTHS, RECORDED A MARGINAL DECLINE.

FOREIGN CURRENCY DEPOSITS GREW BY THE SAME RATE AS HONG KONG DOLLAR DEPOSITS AND THEIR RESPECTIVE SHARES IN TOTAL DEPOSITS REMAINED AT 52% AND 48%.

THE RISE IN FOREIGN CURRENCY DEPOSITS WAS TOTALLY ATTRIBUTABLE ΤΟ NON-U.S. DOLLAR DEPOSITS, POSSIBLY BECAUSE OF THE APPRECIATION OF MAJOR THIRD CURRENCIES AGAINST THE U.S. DOLLAR AND HENCE THE HONG KONG DOLLAR.

LOANS AND ADVANCES

IN

TOTAL OUTSTANDING LOANS AND ADVANCES EXTENDED BY AUTHORISED INSTITUTIONS ROSE BY 1.3% IN OCTOBER COMPARED WITH A 0.2% DECLINE SEPTEMBER.

THE INCREASE WAS DUE TO GROWTH IN FOREIGN THESE GREW BY 1.8%, AT LEAST PARTLY REFLECTING THE MAJOR NON-U.S. DOLLAR FOREIGN CURRENCIES.

THE GROWTH OF HONG KONG DOLLAR LOANS, ON CONTINUED TO MODERATE.

IN

CURRENCY LOANS. APPRECIATION OF

THE OTHER HAND,

ITS MONTHLY GROWTH SLIPPED FROM 1.4% IN AUGUST TO 0.8% AND 0.4% SEPTEMBER AND OCTOBER RESPECTIVELY.

IN PARTICULAR, THE GROWTH OF HONG KONG DOLLAR LOANS FOR USE IN HONG KONG OTHER THAN FOR TRADE FINANCING, OF WHICH MORTGAGE LOANS ACCOUNT FOR ABOUT A QUARTER, SLOWED DOWN FROM 1.0% IN SEPTEMBER ΤΟ 0.4% IN OCTOBER.

MONEY SUPPLY

NOTES AND COINS IN CIRCULATION AS WELL AS HONG KONG DOLLAR DEMAND DEPOSITS HAD STABLE GROWTH OF 0.3% AND 1.0% IN OCTOBER RESPECTIVELY. CONSEQUENTLY, HK$M1 RECORDED A STEADY INCREASE OF 0.8%.

WITH SUBDUED GROWTH IN HONG KONG DOLLAR CREDIT, BOTH HK$M2 AND HK$M3 RECORDED LOW GROWTH OF 0.1% IN OCTOBER.

HK$M3 IN

AS THERE HAD BEEN RAPID GROWTH OF REFLECTING A LARGE INITIAL PUBLIC OFFERING, THE HK$M3 RATE FELL MARKEDLY TO 13.6% FROM 25.7% IN SEPTEMBER.

OCTOBER 1993, ANNUAL GROWTH

NOTE TO EDITORS:

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

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