Monetary Statistics for December 2009

According to statistics published today (Friday) by the Hong Kong Monetary Authority, total deposits with authorized institutions declined by 2.0% in December 2009. Hong Kong-dollar deposits shrank by 1.0% during the month, as the contraction in demand and savings deposits exceeded the increase in time deposits. Foreign-currency deposits also declined by 3.1% in December. Accounting for around 2.4% of foreign-currency deposits, renminbi deposits in Hong Kong grew by 3.9% to RMB62.7 billion at the end of December.

Total loans and advances shrank slightly by 0.1% in December. Loans for use in Hong Kong declined by 0.4% while loans for use outside Hong Kong rose by 1.1%. As Hong Kong-dollar loans expanded while deposits contracted, the Hong Kong-dollar loan-to-deposit ratio increased to 71.2% at the end of December from 69.9% at the end of November.

In the final quarter of 2009, loans for use in Hong Kong declined by 0.7%. Analysed by economic use, lending to financial concerns and stockbrokers contracted, and growth in residential mortgage loans slowed. Trade financing loans continued to expand along with increasing trade flows.

Seasonally adjusted Hong Kong-dollar M1 declined by 0.2% in December but increased by 36.5% from a year earlier. Unadjusted Hong Kong-dollar M3 shrank by 0.8% during the month but expanded by 10.5% year on year.

Annex

For further enquiries, please contact:
Hing-fung Wong, Manager (Communications), at 2878 1802 or
Yokee Wong, Manager (Communications), at 2878 1213

Hong Kong Monetary Authority
29 January 2010