According to statistics published today (31 January 2000) by the Hong Kong Monetary Authority, total deposits increased while total loans and advances decreased during the month of December. Table 1 provides a summary and comparison with earlier months.
Deposits
Total deposits registered moderate growth, of 0.6% in December, following a 1.5% rise in the preceding month. As Hong Kong dollar deposits rose faster than foreign currency deposits, the share of Hong Kong dollar deposits in total deposits increased slightly from 55.3% in November to 55.4% in December.
Notwithstanding an increase in cash withdrawals by the non-bank public, Hong Kong dollar deposits continued to register a rise of 0.8% in December. Demand and savings deposits rose by 4.4% and 7.2% respectively, more than offsetting the 1.7% decline in time deposits.
Foreign currency deposits increased moderately, by 0.5% in December. Of the total, US dollar deposits remained unchanged, while non-US dollar deposits increased by 1.2%.
Loans and advances
Total loans and advances decreased by 1.0% in December. Of the total, domestic loans declined moderately by 0.6%, while loans for use outside Hong Kong registered a larger decline, of 1.8%. As Hong Kong dollar deposits increased faster than Hong Kong dollar loans, the Hong Kong dollar loan-to-deposit ratio declined from 92.6% in November to 91.3% in December.
Money supply
Hong Kong dollar M1 registered a notable rise of 8.8% in December, compared with 0.6% in the preceding month. The rise was mainly attributable to an increase in cash withdrawals amid seasonal demand and the Year 2000 factor around the turn of the millennium. Currency held by the non-bank public rose by HK$12.1 billion (or 13.8%) in December, compared with a moderate rise of HK$0.8 billion (or 1.0%) in the preceding month. Meanwhile, Hong Kong dollar M2 and M3 increased by 1.2% and 1.3% respectively during the month. Compared with a year ago, Hong Kong dollar M1 rose by 15.2% in 1999, while Hong Kong dollar M3 was up by 5.3%.
Quarterly analysis of loans for use in Hong Kong by major economic sectors
Analysed by economic use, loans for stockbrokers saw the largest quarter-on-quarter increase of 8.4%, followed by loans for credit card advances (4.7%), transport and transport equipment (3.3%), and building, construction, property development and investment (0.3%). A decline was felt in other sectors. Loans for trade financing, wholesale and retail trade contracted by 6.0% and 5.4% respectively, while loans for the manufacturing sector and financial concerns shrank more moderately, by 2.0% and 1.9% respectively.
Note to editors
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Hong Kong Monetary Authority
31 January 2000
