According to statistics published today (August 31, 1998) by the Hong Kong Monetary Authority (HKMA), total deposits rose sharply in July as the repatriation of offshore funds intensified. Table 1 gives a summary and comparisons with earlier months.
Deposits
Total deposits rose markedly by 3.8% in July, having grown by 1.4% in the previous month. The growth was across the board, with Hong Kong dollar deposits rising by 4.2% and foreign currency deposits growing by 3.1%. The corporate sector intensified their repatriation of funds following the 22 June announcement of the exemption of profits tax on interest income derived from corporate deposits. The Exchange Fund also brought back US$ funds to help ease liquidity in the banking system.
Of the HK$ deposits, demand and savings deposits picked up slightly by 1.1% and 0.1% respectively during the month, while time deposits rose sharply by 5.6%. As the growth of HK$ deposits outpaced that of foreign currency deposits, the share of HK$ deposits to total deposits rose to 57.7% at end-July, from 57.5% at end-June.
Loans and advances
During the month, total loans and advances declined by 2.6%. Offshore loans remained on a downward trend, dropping by 5.0% in July. The decline was partly due to the valuation effect of a weaker yen. Domestic loans also decreased by 1.1%, with loans for trade financing contracting further by 2.7%, and other loans for use in Hong Kong dropping by 1.0%. As HK$ deposits rose but HK$ loans fell, the HK$ loan-to-deposit ratio decreased to 106.2% at end-July, from 111.5% at end-June.
Money supply
HK$M1 rose by 0.1% in July, having dropped for three consecutive months. HK$M2 and HK$M3 were both up markedly by 3.9%. In the twelve months to July, HK$M1 dropped by 18.0%, while HK$M2 and HK$M3 grew by 2.5% and 2.4% respectively.
Note to editor
For enquiries, please contact the Press and Publications Section, Hong Kong Monetary Authority. (Telephone number: 2878 8261)
Hong Kong Monetary Authority
31 August 1998
TABLE 1 : MONETARY STATISTICS - Jul 1998
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(HK$mn) |
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Earlier months (% change to Jul 1998) |
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Jul 1998 |
Jun 1998 |
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Apr 1998 |
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Jul 1997 |
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| Money Supply |
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| M1 - HK$ |
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170,425 |
170,182 |
(0.1) |
183,749 |
(-7.3) |
207,906 |
(-18.0) |
| Foreign currency |
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19,659 |
18,030 |
(9.0) |
17,387 |
(13.1) |
20,132 |
(-2.3) |
| Total |
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190,084 |
188,212 |
(1.0) |
201,136 |
(-5.5) |
228,038 |
(-16.6) |
| M2 - HK$@ |
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1,747,624 |
1,681,825 |
(3.9) |
1,682,846 |
(3.8) |
1,704,354 |
(2.5) |
| Foreign currency* |
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1,169,993 |
1,135,410 |
(3.0) |
1,122,951 |
(4.2) |
1,047,678 |
(11.7) |
| Total |
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2,917,617 |
2,817,235 |
(3.6) |
2,805,797 |
(4.0) |
2,752,032 |
(6.0) |
| M3 - HK$@ |
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1,761,526 |
1,696,175 |
(3.9) |
1,697,162 |
(3.8) |
1,720,345 |
(2.4) |
| Foreign currency* |
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1,218,207 |
1,182,120 |
(3.1) |
1,172,170 |
(3.9) |
1,118,619 |
(8.9) |
| Total |
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2,979,733 |
2,878,294 |
(3.5) |
2,869,332 |
(3.8) |
2,838,964 |
(5.0) |
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| Notes and coins in circulation |
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89,527 |
90,576 |
(-1.2) |
90,458 |
(-1.0) |
89,515 |
(0.0) |
| of which held by public |
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78,434 |
79,193 |
(-1.0) |
80,181 |
(-2.2) |
79,580 |
(-1.4) |
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| Total Deposits |
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| Total Demand deposits |
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111,650 |
109,019 |
(2.4) |
120,955 |
(-7.7) |
148,458 |
(-24.8) |
| Total Savings deposits |
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465,637 |
464,511 |
(0.2) |
510,846 |
(-8.8) |
526,402 |
(-11.5) |
| Total Time deposits |
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2,233,902 |
2,135,297 |
(4.6) |
2,072,382 |
(7.8) |
2,002,503 |
(11.6) |
| With licensed banks |
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2,185,263 |
2,087,703 |
(4.7) |
2,022,802 |
(8.0) |
1,937,993 |
(12.8) |
| With restricted licence banks |
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38,560 |
37,046 |
(4.1) |
38,157 |
(1.1) |
49,690 |
(-22.4) |
| With deposit-taking companies |
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10,079 |
10,549 |
(-4.5) |
11,423 |
(-11.8) |
14,820 |
(-32.0) |
| HK$ deposits@ |
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1,622,941 |
1,556,814 |
(4.2) |
1,559,950 |
(4.0 |
) |
1,595,494 |
(1.7) |
| Demand deposits |
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91,991 |
90,989 |
(1.1) |
103,568 |
(-11.2) |
128,326 |
(-28.3) |
| Savings deposits |
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310,159 |
309,886 |
(0.1) |
357,028 |
(-13.1) |
373,295 |
(-16.9) |
| Time deposits@ |
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1,220,792 |
1,155,938 |
(5.6) |
1,099,355 |
(11.0) |
1,093,873 |
(11.6) |
| US$ deposits* |
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678,336 |
645,634 |
(5.1) |
610,535 |
(11.1) |
517,277 |
(31.1) |
| Other foreign currency deposits* |
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509,911 |
506,379 |
(0.7) |
533,697 |
(-4.5) |
564,592 |
(-9.7) |
| Foreign currency deposits* |
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1,188,247 |
1,152,013 |
(3.1) |
1,144,232 |
(3.8) |
1,081,870 |
(9.8) |
| All deposits |
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2,811,189 |
2,708,827 |
(3.8) |
2,704,182 |
(4.0) |
2,677,364 |
(5.0) |
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| Foreign currency swap deposits |
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35,140 |
35,190 |
(-0.1) |
40,309 |
(-12.8) |
36,097 |
(-2.7) |
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| Total Loans and advances |
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| Loans for use in H.K. |
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2,174,470 |
2,198,940 |
(-1.1) |
2,203,518 |
(-1.3) |
2,140,742 |
(1.6) |
| To finance H.K.'s visible trade |
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154,497 |
158,602 |
(-2.6) |
159,889 |
(-3.4) |
177,840 |
(-13.1) |
| To finance merchandising trade not touching H.K. |
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17,846 |
18,469 |
(-3.4) |
19,924 |
(-10.4) |
22,153 |
(-19.4) |
| Other loans for use in H.K. |
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2,002,127 |
2,021,869 |
(-1.0) |
2,023,705 |
(-1.1) |
1,940,749 |
(3.2) |
| Loans for use outside H.K.# |
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1,325,707 |
1,395,096 |
(-5.0) |
1,512,250 |
(-12.3) |
2,120,879 |
(-37.5) |
| Other loans for use outside H.K. |
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1,289,000 |
1,358,423 |
(-5.1) |
1,471,871 |
(-12.4) |
2,070,314 |
(-37.7) |
| Other loans where the place of use is not known |
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36,707 |
36,674 |
(0.1) |
40,379 |
(-9.1) |
50,565 |
(-27.4) |
| Loans in HK$ |
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1,723,312 |
1,735,689 |
(-0.7) |
1,739,590 |
(-0.9) |
1,717,752 |
(0.3) |
| Loans in US$ |
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698,100 |
715,153 |
(-2.4) |
730,639 |
(-4.5) |
718,956 |
(-2.9) |
| Loans in other foreign currencies |
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1,078,764 |
1,143,195 |
(-5.6) |
1,245,539 |
(-13.4) |
1,824,913 |
(-40.9) |
| Loans in foreign currencies |
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1,776,864 |
1,858,348 |
(-4.4) |
1,976,177 |
(-10.1) |
2,543,869 |
(-30.2) |
| Total loans and advances |
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3,500,177 |
3,594,036 |
(-2.6) |
3,715,768 |
(-5.8) |
4,261,622 |
(-17.9) |
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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. |
