TNAG-1483-FCO40-2037-Economic-situation-in-Hong-Kong-1986 — Page 216

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

3.2

In the securities market, the opening in April 1986 of the Unified Stock Exchange, which replaced the four stock exchanges, introduced computer-assisted stock trading in Hong Kong. The introduction of the Hang Seng Index futures in May also received firm support from investors.

3.3

In line with developments in other

centres, activities in both the primary and the

financial

secondary

markets for certificates of deposit and other kinds of bills

and notes increased rapidly.

Deposits

3.4

the

Hong Kong dollar deposits continued to grow during first half of this year, albeit at a slower rate than last (3). year

The slower growth rate was partly due to the rapid

(4) increase in

in foreign currency swap deposits

According to

/statistics

(3)

During

the period

Growth rates of deposits

with banks and deposit-taking companies (%)

Foreign

Currencies

HK$

Total

1985 Q1

1986 Q1

TYSLER ZIE

+2.5

+6.8

+4.6

Q2

+3.3

+6.3

+4.8

+0.6

+9.7

+5.1

04

+3.0

+8.5

+5.9

H1

+5.9

+13.6

+9.6

H2

+3.7

+19.0

+11.2

+2.0

+7.8

+5.1

Q2

+1.9

+6.3

+4.3

H1

+3.9

+9.6

As at end of

June 86 (HK$Mn)

(4)

220,409

+14.7

271,542

491,951

Foreign currency swap deposits are deposits involving customers buying spot foreign currencies and placing them on deposit with financial institutions, but at the same time entering into a contract to sell forward such foreign currencies (principal plus interest) to the financial institutions on maturity of such deposits. For most analytical purposes, they should be regarded as Hong Kong dollar deposits.

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