XN000022-1996-05-31 — Page 25

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Within Hong Kong dollar deposits, demand deposits increased by 3.1% in April, reversing a 2.1% drop in the previous month. Time deposits rose by 1.1%, continuing the growth of 2.2% in March. On the other hand, savings deposits decreased by 1.4%, after a 1% increase in March.

The rise in foreign currency deposits was the result of a 3.7% increase in non- US dollar foreign currency deposits during the month which outweighed a 1.3% decline in US dollar deposits.

Foreign currency swap deposits dropped by a further 3.4% in April. Since the peak of November 1994, foreign currency swap deposits have fallen for 17 months in a row, leading to a cumulative decrease of 58.3%.

Loans and advances

Total loans and advances grew by 2.1% in April, reversing the 1.6% decline in March. The rise was broadly based, with loans for trade financing (including offshore. trade) rising by 3.2%, other loans for use in Hong Kong increasing by 1.6%, and loans for use outside Hong Kong growing by 2.4% during the month.

Analysed by currency, both Hong Kong dollar loans and foreign currency loans increased during the month, by 1.3% and 2.6% respectively. As HK$ loans grew faster than Hong Kong dollar deposits, the Hong Kong dollar loan-to-deposit ratio rose to 106.6% at the end of April, from 105.9% at the end of March.

Money supply

HK$ M1 rose 0.5% in April as the rise in Hong Kong dollar demand deposits more than offset a 3.1% decrease in currency held by the public. HK$ M2 and HK$ M3 grew by 0.3% and 0.4% respectively during the month, following increases of 1.2% and 1.1% in March.