Monetary Statistics for June 2007

According to statistics published today (Tuesday) by the Hong Kong Monetary Authority, total deposits with authorized institutions increased by 5.6% in June 2007. Hong Kong dollar and foreign currency deposits rose by 8.5% and 2.1% respectively. Meanwhile, the Hong Kong dollar demand deposits registered a substantial increase of 47.1%, partly reflecting temporary placements relating to equity initial public offerings at the end of the month. With the issuance of renminbi-denominated bonds in Hong Kong, renminbi deposits grew by 5.6% to RMB 27.6 billion yuan at the end of June.

Total loans and advances expanded by 8.2% during the month, with Hong Kong dollar and foreign currency loans increasing by 9.5% and 4.1% respectively. Loans for use in Hong Kong and outside Hong Kong grew by 8.6% and 5.9% respectively. Reflecting a larger percentage increase in loans relative to deposits, the Hong Kong dollar loan-to-deposit ratio rose slightly to 74.0% at the end of June.

On a quarter-on-quarter basis, loans for use in Hong Kong increased by 6.4% in June. Analysed by economic uses, lending to stockbrokers and financial concerns, as well as trade financing, registered notable increases in the second quarter.

On a seasonally adjusted basis, Hong Kong dollar M1 grew by 4.7% in June and by 16.5% from a year earlier. Unadjusted Hong Kong dollar M2 and M3 expanded by 7.9% and 7.8% respectively during the month. On a year-on-year comparison, Hong Kong dollar M2 and M3 increased by 27.4% and 27.3% respectively.

Annex

For further enquiries, please contact:
Sara Yip, Manager (Press), at 2878 8246 or
Peggy Lo, Manager (Press), at 2878 1687

Hong Kong Monetary Authority
31 July 2007