Monetary Statistics for February 1999

According to statistics published today (31 March 1999) by the Hong Kong Monetary Authority ("HKMA"), total deposits and loans and advances decreased in February. Table 1 provides a summary and comparison with earlier months.

Deposits

Total deposits dropped by 0.6% (HK$16.7 billion) in February, mainly due to seasonal factors and valuation effects. As the decline in HK$ deposits (0.3%) was smaller than that of foreign currency deposits (0.9%), the share of HK$ deposits to total deposits increased slightly to 56.5% in February, compared with 56.4% in the preceding month.

The decline in HK$ deposits was mainly attributable to a shift from demand and savings deposits to cash held by the public around the Chinese New Year holiday. Demand deposits and saving deposits decreased by 6.7% and 1.2% respectively, while time deposits increased by 0.5% during the month.

Foreign currency deposits declined by 0.9% in February, as the decline in non-US$ foreign currency deposits (2.6%) more than offset the increase in US$ deposits (0.4%). The decline in the former was mainly due to valuation effects. During February, the HK$ appreciated against most major currencies.

Loans and advances

Total loans and advances shrank for the fourth consecutive month, by 2.6% in February, compared with a decline of 2.2% in the preceding month. In line with the slowdown of economic activity in the region, loans for use outside Hong Kong plummeted by 6.0%, while domestic loans fell by a modest 0.7%. Of the total credit for use in Hong Kong, loans for trade financing contracted by 3.1%, while other loans declined by 0.5%. HK$ loan-to-deposit ratio rose slightly to 101.2% at end-February, compared with 101.1% at end-January.

Money supply

HK$M1 rose by 0.9% in February, as the 9.8% rise in cash held by the public outweighed the 6.7% decline in demand deposits. Meanwhile, both HK$M2 and HK$M3 increased by 0.2% during the month. In the twelve months to February, HK$M1 fell by 2.0%, while HK$M2 and HK$M3 grew by 8.8% and 8.4% respectively.

Note to editor

For enquiries, please contact the Press Section, Hong Kong Monetary Authority. (Telephone number: 2878 8261)

Hong Kong Monetary Authority
31 March 1999