According to statistics published today (Friday, 30 May) by the Hong Kong Monetary Authority, deposits, loans and advances increased during April 1997. Table 1 summarises figures for April 1997 and comparisons with earlier months.
Deposits
Total deposits rose by 2.4% in April, reversing the fall of 1.4% in March. HK$ deposits and foreign currency deposits increased by 3.6% and 0.7% respectively.
The rise in HK$ deposits was across-the-board, including demand, savings and time deposits. While saving deposits recorded a modest increase of 0.9%, demand and time deposits were up sharply by 8.7% and 4% respectively. The surge in demand deposits was in line with the renewed vigour in asset markets towards late April, while the rise in time deposits reflected partly placements of new share subscription monies with banks before the refund dates.
The rise in foreign currency deposits was primarily due to an increase of 1.9% in US$ deposits, which more than offset a decrease of 0.4% in non-US$ foreign currency deposits. The latter could be partly a result of the valuation effect of exchange rate changes, as the US dollar, to which the Hong Kong dollar is linked, appreciated against most other major currencies during the month.
Loans and Advances
Total loans and advances rose by 1.5% in April, reversing the fall of 2.5% in March. Domestic credit expanded by 2.9%, with loans for trade financing rising by 2.3% and other loans increasing by 3.0%. The latter's rise was consistent with the buoyant asset markets during late April and the strong growth in residential mortgage loans. On the other hand, offshore loans grew modestly by 0.1% in April, after falling by 4.3% in the previous month.
Analyzed by currency, both HK$ loans and foreign currency loans rose during the month, by 3.4% and 0.2% respectively. As the expansion of HK$ loans was less rapid than that of HK$ deposits, the HK$ loan-to-deposit ratio edged down to 108.8% at end-April, from 109.1% at end-March.
Money Supply
HK$M1 rose by 3.8% in April, as HK$ demand deposits increased sharply by 8.7%, more than offsetting the 3.2% fall in currency held by the public. HK$M2 and HK$M3 expanded by 3.3% and 3.2% in April respectively, reversing the contraction in March. Compared to a year earlier, HK$M1, HK$M2 and HK$M3 rose by 17%, 21.9% and 21.8% respectively.
* Adjusted to exclude foreign currency swap deposits.
@ Adjusted to include foreign currency swap deposits.
# Including those where place of usage is unknown.
Note : Data may not add up to total due to rounding.
Hong Kong Monetary Authority
30 May 1997
