1. According to statistics published today (June 29, 1998) by the Hong Kong Monetary Authority, domestic credit registered a mild pick-up in May 1998. Table 1 gives a summary and comparisons with earlier months.
Loans and advances
2. During May, local credit demand rose for the second consecutive month, up by 0.5%, reversing the downward trend in the first quarter. Of the total domestic loans, loans for trade financing, which accounts for less than 10% of total local credit, fell by 1.1 %, while other loans for use in Hong Kong grew by 0.6%. Meanwhile, owing in part to the valuation effect of a weaker yen, offshore lending dropped by 4.4% during the month. As a result, total loans and advances declined by 1.5% in May.
Deposits
3. Total deposits fell by 1.2% in May, with both HK$ and foreign currency deposits contracting by similar amounts. As a result, the share of HK$ deposits to total deposits was virtually unchanged at 57.7% at end-May 1998.
4. Having risen for three consecutive months, HK$ deposits dropped by 1.2% in May. Of the total, time deposits rose by 1.4%, but demand and savings deposits fell by a significant 10. 4% and 6.5% respectively. This reflected in part depositors' preference towards time deposits as a result of banks' offering of higher time deposit rates in May.
5. Both US$ and non-US$ foreign currency deposits declined for the third straight month, down by 0.7% and 2.0% respectively in May. The latter was partly a result of the valuation effect of exchange rate changes, as the US dollar, to which the HK dollar is linked, appreciated strongly against most other major currencies.
6. As HK$ deposits contracted and HK$ loans increased, the HK$ loan-to-deposit ratio rose to 113.2% at end-May, from 111.5% at end-April.
Money supply
7. During the month, money supply growth has continued to slow. HK$ M1 fell by 5.8% in May, mainly due to the sharp fall of demand deposits. Meanwhile, HK$M2 and HK$M3 were both down by 0.9%. In the twelve months to May, HK$M1 dropped by 15.8%, while HK$M2 and HK$M3 grew by 2.1% and 1.9% respectively.
Note to editor
8. For enquiries, please contact the Press and Publications Section, Hong Kong Monetary Authority. (Telephone number: 2878 8261)
Hong Kong Monetary Authority
29 June 1998
TABLE 1 : MONETARY STATISTICS - May 1998
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(HK$mn) |
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Earlier months (% change to May 1998) |
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May 1998 |
Apr 1998 |
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Feb 1998 |
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May 1997 |
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| Money Supply |
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| M1 - HK$ |
|
173,107 |
183,749 |
(-5.8) |
182,624 |
(-5.2) |
205,486 |
(-15.8) |
| Foreign currency |
|
17,929 |
17,387 |
(3.1) |
18,821 |
(-4.7) |
20,604 |
(-13.0) |
| Total |
|
191,036 |
201,136 |
(-5.0) |
201,445 |
(-5.2) |
226,089 |
(-15.5) |
| M2 - HK$@ |
|
1,668,511 |
1,682,846 |
(-0.9) |
1,657,064 |
(0.7) |
1,633,552 |
(2.1) |
| Foreign currency* |
|
1,112,648 |
1,122,951 |
(-0.9) |
1,145,716 |
(-2.9) |
1,075,451 |
(3.5) |
| Total |
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2,781,159 |
2,805,797 |
(-0.9) |
2,802,781 |
(-0.8) |
2,709,003 |
(2.7) |
| M3 - HK$@ |
|
1,682,489 |
1,697,162 |
(-0.9) |
1,672,580 |
(0.6) |
1,650,771 |
(1.9) |
| Foreign currency* |
|
1,159,218 |
1,172,170 |
(-1.1) |
1,203,430 |
(-3.7) |
1,144,750 |
(1.3) |
| Total |
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2,841,707 |
2,869,332 |
(-1.0) |
2,876,010 |
(-1.2) |
2,795,521 |
(1.7) |
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| Notes and coins in circulation |
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92,219 |
90,458 |
(1.9) |
94,260 |
(-2.2) |
88,848 |
(3.8) |
| of which held by public |
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80,347 |
80,181 |
(0.2) |
83,507 |
(-3.8) |
78,900 |
(1.8) |
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| Total Deposits |
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| Total Demand deposits |
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110,689 |
120,955 |
(-8.5) |
117,938 |
(-6.1) |
147,189 |
(-24.8) |
| Total Savings deposits |
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486,751 |
510,846 |
(-4.7) |
504,462 |
(-3.5) |
532,073 |
(-8.5) |
| Total Time deposits |
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2,073,170 |
2,072,382 |
(0.0) |
2,087,686 |
(-0.7) |
1,955,173 |
(6.0) |
| With licensed banks |
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2,026,326 |
2,022,802 |
(0.2) |
2,029,879 |
(-0.2) |
1,893,285 |
(7.0) |
| With restricted licence banks |
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36,092 |
38,157 |
(-5.4) |
44,770 |
(-19.4) |
47,402 |
(-23.9) |
| With deposit-taking companies |
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10,752 |
11,423 |
(-5.9) |
13,037 |
(-17.5) |
14,486 |
(-25.8) |
| HK$ deposits@ |
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1,541,590 |
1,559,950 |
(-1.2) |
1,533,414 |
(0.5) |
1,526,969 |
(1.0) |
| Demand deposits |
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92,760 |
103,568 |
(-10.4) |
99,117 |
(-6.4) |
126,585 |
(-26.7) |
| Savings deposits |
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333,657 |
357,028 |
(-6.5) |
346,841 |
(-3.8) |
374,008 |
(-10.8) |
| Time deposits@ |
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1,115,173 |
1,099,355 |
(1.4) |
1,087,456 |
(2.5) |
1,026,376 |
(8.7) |
| US$ deposits* |
|
606,152 |
610,535 |
(-0.7) |
636,957 |
(-4.8) |
521,048 |
(16.3) |
| Other foreign currency deposits* |
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522,868 |
533,697 |
(-2.0) |
539,714 |
(-3.1) |
586,419 |
(-10.8) |
| Foreign currency deposits* |
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1,129,020 |
1,144,232 |
(-1.3) |
1,176,671 |
(-4.0) |
1,107,467 |
(1.9) |
| All deposits |
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2,670,610 |
2,704,182 |
(-1.2) |
2,710,085 |
(-1.5) |
2,634,435 |
(1.4) |
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| Foreign currency swap deposits |
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37,528 |
40,309 |
(-6.9) |
36,759 |
(2.1) |
36,542 |
(2.7) |
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| Total Loans and advances |
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| Loans for use in H.K. |
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2,214,295 |
2,203,525 |
(0.5) |
2,220,467 |
(-0.3) |
2,080,873 |
(6.4) |
| To finance H.K.'s visible trade |
|
158,532 |
159,889 |
(-0.8) |
165,330 |
(-4.1) |
170,613 |
(-7.1) |
| To finance merchandising trade not touching H.K. |
|
19,260 |
19,929 |
(-3.4) |
20,775 |
(-7.3) |
20,067 |
(-4.0) |
| Other loans for use in H.K. |
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2,036,503 |
2,023,707 |
(0.6) |
2,034,362 |
(0.1) |
1,890,193 |
(7.7) |
| Loans for use outside H.K.# |
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1,446,151 |
1,512,243 |
(-4.4) |
1,768,675 |
(-18.2) |
2,112,802 |
(-31.6) |
| Other loans for use outside H.K. |
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1,402,103 |
1,471,864 |
(-4.7) |
1,726,135 |
(-18.8) |
2,066,069 |
(-32.1) |
| Other loans where the place of use is not known |
|
44,048 |
40,379 |
(9.1) |
42,540 |
(3.5) |
46,734 |
(-5.7) |
| Loans in HK$ |
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1,744,649 |
1,739,590 |
(0.3) |
1,732,354 |
(0.7) |
1,683,947 |
(3.6) |
| Loans in US$ |
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736,923 |
730,639 |
(0.9) |
770,996 |
(-4.4) |
686,021 |
(7.4) |
| Loans in other foreign currencies |
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1,178,874 |
1,245,539 |
(-5.4) |
1,485,791 |
(-20.7) |
1,823,708 |
(-35.4) |
| Loans in foreign currencies |
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1,915,797 |
1,976,177 |
(-3.1) |
2,256,787 |
(-15.1) |
2,509,729 |
(-23.7) |
| Total loans and advances |
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3,660,446 |
3,715,768 |
(-1.5) |
3,989,141 |
(-8.2) |
4,193,676 |
(-12.7) |
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| * Adjusted to exclude foreign currency swap deposits. |
| @ Adjusted to include foreign currency swap deposits. |
| # Including those where place of usage is unknown. |
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| Note : Data may not add up to total due to rounding. |
