Monetary Statistics for December 2002

According to statistics published today (Thursday) by the Hong Kong Monetary Authority, total deposits with authorized institutions declined marginally in December 2002, reflecting a small fall (0.3%) in Hong Kong dollar deposits. The latter was due to a decline in time deposits, which exceeded increases in demand and savings deposits. Foreign currency deposits were little changed during the month, as a decrease in US dollar deposits was nearly offset by a rise in other foreign currency deposits.

Total loans and advances shrank in December. Of the total, loans for use outside Hong Kong fell by 2.1%, while loans for use in Hong Kong rose slightly by 0.2%. Analysed by currency, Hong Kong dollar denominated loans were virtually unchanged while foreign currency loans decreased during the month. The Hong Kong dollar loan-to-deposit ratio edged up slightly to 88.5%.

In the December quarter, domestic credit registered a small decline. An analysis by economic use reveals that this was in part attributable to decreases in loans for mortgages; and wholesale and retail trade, reflecting the weak consumer demand. Lending to stockbrokers contracted for the two consecutive quarters. In other sectors, loans for building, construction, property development and investment; transport and transport equipment; and financial concerns grew slightly.

On a seasonally adjusted basis, Hong Kong dollar M1 increased by 2.4% during the month and 12.7% over a year ago. Unadjusted Hong Kong dollar M2 and M3 shrank by 0.3% and 0.2% respectively. They were 0.7% and 0.6% respectively lower than the levels a year ago.

For further enquiries, please contact:

Jasmin Fung, Manager (Press), at 2878 8246 or
Thomas Chan, Senior Manager (Press), at 2878 1480

Hong Kong Monetary Authority
30 January 2003

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