Monetary Statistics for May 2006

According to statistics published today (Friday) by the Hong Kong Monetary Authority, total deposits with authorized institutions grew by 5.6% in May 2006, as an 11.5% rise in Hong Kong dollar deposits more than offset a decline of 1.2% in foreign currency deposits. Within foreign currency deposits, renminbi deposits increased by 0.7% to RMB22.9 billion yuan in May.

Total loans and advances expanded by 8.1% in May, with loans for use in Hong Kong and outside Hong Kong rising by 9.1% and 0.5% respectively. Hong Kong dollar and foreign currency loans both registered an increase. As Hong Kong dollar deposits grew proportionally more than Hong Kong dollar loans, the loan-to-deposit ratio fell further to 78.3% in May.

On a seasonally adjusted basis, Hong Kong dollar M1 declined by 0.6% in May and by 3.4% from a year earlier. Unadjusted Hong Kong dollar M2 and M3 expanded by 10.6% and 10.5% respectively during the month, and by 27.0% from a year earlier.

Annex

For further enquiries, please contact:
Ying-ying Cheng, Manager (Press), at 2878 1687 or
Thomas Chan, Senior Manager (Press), at 2878 1480

Hong Kong Monetary Authority
30 June 2006