Monetary Statistics for May 1999

According to statistics published today (29 June 1999) by the Hong Kong Monetary Authority (HKMA), both total deposits and loans and advances in Hong Kong decreased during the month of May. Table 1 provides a summary and comparison with earlier months.

Deposits

Total deposits declined by 0.4% (HK$11.6 billion) in May. As the drop in HK$ deposits (-0.4%) slightly outpaced that of foreign currency deposits (-0.3%), the share of HK$ deposits in total deposits decreased marginally from 57.2% at end-April to 57.1% at end-May.

The decline in HK$ deposits was mainly attributable to decreases in demand and time deposits. Demand and time deposits declined by 2.0% and 0.5% respectively during the month, while savings deposits rose by 0.2%.

Foreign currency deposits shrank by 0.3% in May. Of the total, the decline in non-US$ foreign currency deposits (-1.0%), which reflected in part valuation effects, outweighed the rise in US$ deposits (0.2%).

Loans and advances

Total loans and advances shrank by 2.2% in May. In line with subdued demand in the region, loans for use outside Hong Kong declined by 4.8%, while domestic loans fell by 1.0%. The HK$ loan-to-deposit ratio remained unchanged at 96.7% at end-May.

Money supply

HK$M1 dropped by 1.1% in May, as demand deposits and currency held by the public declined by 2.0% and 0.1% respectively. Meanwhile, both HK$M2 and HK$M3 decreased by 0.5% during the month. In the twelve months to May, HK$M1 grew by 2.9%, while HK$M2 and HK$M3 grew by 10.5% and 10.3% respectively.

Note to editor

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

Hong Kong Monetary Authority

29 June 1999

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