Monetary Statistics for October 2003

According to statistics published today (Friday) by the Hong Kong Monetary Authority, total deposits with authorized institutions grew for the seventh consecutive month, by 3.0% in October. This was attributable to an expansion in both Hong Kong dollar and foreign currency deposits, by 3.7% and 2.1% respectively. Among Hong Kong dollar deposits, demand deposits registered a notable increase of 27.5%, in part reflecting placements related to initial public offerings.

Total loans and advances grew by 2.6% in October, with loans for use in Hong Kong and outside Hong Kong rising by 2.9% and 0.1% respectively. The rise in domestic loans was partly due to increased borrowings for purchasing new equity shares. Analysed by currency, both Hong Kong dollar and foreign currency loans recorded an expansion. As Hong Kong dollar loans registered a smaller increase than Hong Kong dollar deposits, the Hong Kong dollar loan-to-deposit ratio fell slightly to 82.7% in October.

On a seasonally adjusted basis, Hong Kong dollar M1 grew by 1.6% during the month and by 26.0% from a year ago. Unadjusted Hong Kong dollar M2 and M3 both rose by 3.3% during the month, and by 7.1% and 6.9% respectively on a year-on-year comparison.

For further enquiries, please contact:

Kevin Ip, Manager (Press), at 2878 1687 or
Thomas Chan, Senior Manager (Press), at 2878 1480

Hong Kong Monetary Authority
28 November 2003

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