Monetary Statistics for March 2024

According to statistics published today (30 April) by the Hong Kong Monetary Authority, total deposits with authorized institutions increased by 0.2% in March 2024.  Among the total, Hong Kong dollar deposits increased by 0.7% while foreign currency deposits decreased by 0.2% in March.  In the first quarter of 2024, total deposits decreased by 0.2% while Hong Kong dollar deposits increased by 0.1%.  Renminbi deposits in Hong Kong decreased by 2.0% in March to RMB944.7 billion at the end of March.  The total remittance of renminbi for cross-border trade settlement amounted to RMB1,248.4 billion in March, compared with RMB1,064.4 billion in February.  It should be noted that changes in deposits are affected by a wide range of factors, such as interest rate movements and fund-raising activities.  It is therefore more appropriate to observe the longer-term trends, and not to over-generalise fluctuations in a single month.

Total loans and advances increased by 0.8% in March, while decreased by 1.0% in the first quarter of 2024.  Among the total, loans for use in Hong Kong (including trade finance) and loans for use outside Hong Kong increased by 0.8% and 0.7% respectively in March.  The Hong Kong dollar loan-to-deposit ratio decreased to 83.2% at the end of March from 83.7% at the end of February, as Hong Kong dollar deposits increased while Hong Kong dollar loans remained virtually unchanged.

For the first quarter of 2024 as a whole, loans for use in Hong Kong (including trade finance) decreased by 1.2% after declining by 0.1% in the previous quarter. Analysed by economic use, the decrease in loans during the first quarter was mainly led by loans to financial concerns and loans to wholesale and retail trade sector.

Hong Kong dollar M2 and M3 both increased by 0.6% in March while both decreased by 0.4% when compared to a year ago.  The seasonally-adjusted Hong Kong dollar M1 decreased by 1.0% in March and decreased by 11.4% compared to a year ago, reflecting in part investment-related activities.  Total M2 and total M3 both increased by 0.2% in March.  Compared to a year earlier, total M2 and total M3 both increased by 3.4%.  

As monthly monetary statistics are subject to volatilities due to a wide range of transient factors, such as seasonal and IPO-related funding demand as well as business and investment-related activities, caution is required when interpreting the statistics.

Annex

Hong Kong Monetary Authority
30 April 2024