XN000022-1995-07-31 — Page 5

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Quarterly analysis of loans for use in Hong Kong by sector

During the June quarter of this year, domestic loans rose by 3.7%. Apart from an 11.5% growth in loans to finance external trade, loans to the retail and wholesale trade recorded a strong increase of 9.4% during the quarter. Growth in private residential mortgage loans also picked up notably to 7.1% from 1.4% in the March quarter, reflecting the increased activity in the primary market of residential properties.

Loan growth in other major economic sectors moderated. Loans to the manufacturing sector slowed down to 5.3% against 6.8% in the previous quarter. Loans to the building, construction, property development and investment sector grew modestly by 1.1% compared with 2.1% in the March quarter. During the period, firms in the transport and finance industries (other than authorised institutions) repaid part of their loans. As a result, the outstanding loans to these two sectors fell by 1.7% and 2.9% respectively.

Money Supply

I

Total currency held by the public registered a decline of 0.3% in June. This was offset by a 3.0% growth in HK dollar demand deposits. As a result, HK$M1 recorded an increase of 1.6% during the month.

HK$M3, after adjusting for foreign currency swap deposits, grew by 2.3% this month, compared with 0.5% in May.

Note to Editor:

For further press enquiries, please contact the Press and Publications Section, Hong Kong Monetary Authority on 2878 8261.