XN000022-1995-09-19 — Page 7

- 6 ·

+1

The increase in the turnover of forwards was mainly contributed by the transactions in USD/JPY, USD/HKD and USD/DEM.

The majority of forward transactions (including both outright forwards and foreign exchange swaps) were very short term in nature. Nearly three quarters of the transactions had maturity less than seven days and slightly over a quarter between seven days and one year. Very few had maturity over one year.

Counterparty analysis

A large majority of the net turnover in April 1995 was conducted with overseas banks or financial institutions (74% of net turnover as compared to 68% in April 1992). Transactions involving local counterparties accounted for a quarter of the total, slightly below the 30% in 1992. 15% of these were transactions between authorised institutions in Hong Kong, 2% with local financial institutions and 8% with local non- financial customers.

35% of transactions were conducted through brokers in April 1995, compared to 31% in April 1992.

Market concentration

Foreign banks accounted for 85% of gross turnover and locally incorporated Als for the remaining 15%, about the same as in April 1992.

Foreign exchange trading is fairly concentrated. The top 10 players accounted for over half the gross turnover and the top 30 for 80%.

Attention News Editors:

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