TNAG-1483-FCO40-2037-Economic-situation-in-Hong-Kong-1986 — Page 219

3.8

the

Activities in

secondary market for negotiable certificates of deposit also increased significantly during the first half. Total purchases of these certificates by all deposit-taking institutions from the market amounted to HK$15

billion in the first half of 1986. This represents an increase of 118.6% compared with the second half of 1985. On

the other hand, total sales of such certificates by all deposit-taking institutions amounted to HK$13.3 billion,

representing an increase of 80.2%. Again, most of these increases came from trading in certificates denominated in Hong Kong dollars.

Money supply

3.9

(7)

The slower growth in Hong Kong dollar deposits during the first half of 1986 led to a slow-down in the growth

/rates

(7) The definitions of the money supply are:

Ml total:

M2 total:

M3 total:

notes and coins with the public, plus customers' demand deposits with licensed banks.

Ml plus customers' savings and time deposits with licensed banks, plus negotiable certificates of deposit issued by licensed banks and held outside the monetary

sector.

M2 plus customers' deposits with licensed and registered deposit-taking companies plus negotiable certificates of deposit issued by deposit-taking companies and held outside the monetary sector.

HK$M1, HK$M2 and HK$M3 are the Hong Kong dollar components of these definitions.

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