Monetary Statistics for April 1999

According to statistics published today (31 May 1999) by the Hong Kong Monetary Authority (HKMA), total deposits in Hong Kong increased, while loans and advances decreased during the month of April. Table 1 provides a summary and comparison with earlier months.

Deposits

Total deposits grew by 1.7% (HK$48.8 billion) in April. As the rise in HK$ deposits (1.9%) was larger than that of foreign currency deposits (1.3%), the share of HK$ deposits to total deposits increased from 57.0% at end-March to 57.2% at end-April.

The rise in HK$ deposits reflected increases in savings and time deposits, of 5.1% and 1.0% respectively during the month. On the other hand, demand deposits dropped by 0.4%, probably due to the high base of comparison in March in connection with increased Treasury deposits for tax rebates.

Foreign currency deposits grew by 1.3% in April, with both US$ deposits and non-US$ foreign currency deposits increasing at the same rate.

Loans and advances

Total loans and advances shrank for the sixth consecutive month, by 1.1% in April. In line with the slowdown of economic activity in the region, loans for use outside Hong Kong declined by 0.8%, while domestic loans fell by 1.2%. The HK$ loan-to-deposit ratio decreased to 96.7% at end-April, compared with 99.2% at end-March.

Money supply

HK$M1 dropped by 0.9% in April, as demand deposits and currency held by the public declined by 0.4% and 1.5% respectively. Meanwhile, both HK$M2 and HK$M3 increased by 1.7% during the month. In the twelve months to April, HK$M1 fell by 2.0%, while HK$M2 and HK$M3 grew by 10.1% and 9.9% respectively.

Note to editor

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

Hong Kong Monetary Authority

31 May 1999

Annex