Monetary Statistics for September 1998

According to statistics published today (October 30, 1998) by the Hong Kong Monetary Authority (HKMA), total deposits continued to increase in September. Table 1 gives a summary and comparisons with earlier months.

Deposits

Total deposits increased for the fourth straight month in September, growing by 1.0%, after a 1.4% rise in the previous month. Both Hong Kong dollar and foreign currency deposits increased, by 0.5% and 1.5% respectively.

Of the HK$ deposits, demand and savings deposits grew by 0.6% and 4.2% respectively during the month, while time deposits fell by 0.4%. Since the growth of foreign currency deposits outpaced that of HK$ deposits, the share of HK$ deposits to total deposits edged down to 57.0% at end-September, from 57.3% at end-August. At this level, the share of HK$ deposits to total deposits remained significantly higher than the average share of 54.6% in 1996, however.

Loans and advances

During the month, total loans and advances declined by 1.7%. Offshore loans remained on a downward trend, falling by 3.6% in September. Domestic loans also decreased by 0.6%. Of the local loans, loans for trade financing contracted further by 2.7% while other local loans declined by 0.5%. As HK$ deposits rose but HK$ loans fell, the HK$ loan-to-deposit ratio decreased to 104.0% at end-September, from 105.1% at end-August.

Quarterly analysis of loans for use in Hong Kong by major economic sector

During the September quarter, domestic loans contracted further by 1.9%, following a drop of 0.2% in the previous quarter. Lending to the manufacturing sector and loans for trade financing contracted by 6.0% and 7.3% respectively. In line with the slack performance in retail sales, loans for wholesale and retail trades dropped by 4.1% in the September quarter, having declined by 1.5% in the June quarter. Amidst weak investment sentiment, lending to stockbrokers and financial concerns fell by 18.2% and 2.8% respectively during the quarter. Likewise, loans for building, construction and property development and investment declined by 2.1%, reversing the 0.4% growth in the June quarter. Nevertheless, residential mortgage loans continued to grow by 1.7% in the third quarter, having increased by 2.8% in the previous quarter.

Money supply

HK$M1 rose by 1.1% in September, having dropped by 1.9% in August. HK$M2 and HK$M3 were up by 0.7% and 0.6% respectively during the month. In the twelve months to September, HK$M1 dropped by 17.2%, while HK$M2 and HK$M3 grew by 3.6% and 3.2% respectively.

Note to editor

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Hong Kong Monetary Authority

30 October 1998