Monetary Statistics for July 2000

According to statistics published today (31 August 2000) by the Hong Kong Monetary Authority, total deposits of all authorised institutions increased, while total loans and advances decreased, during the month of July. Table 1 provides a summary and comparison with earlier months.

Deposits

Total deposits increased by 0.6% in July, with both Hong Kong dollar and foreign currency deposits registering increases. The share of Hong Kong dollar deposits in total deposits, at 54.0% in July, was virtually unchanged compared with the previous month.

Hong Kong dollar deposits rose slightly by 0.8% in July, following a rise of 2.7% in June. Demand and savings deposits increased by 4.5% and 3.2% respectively, while time deposits declined slightly by 0.4%.

Foreign currency deposits increased for the sixth consecutive month, rising by 0.5% in July. US dollar deposits registered a notable rise of 2.7%, more than offsetting the decline in non-US dollar deposits.

Loans and advances

Total loans and advances declined by 1.3% in July. Domestic loans rose slightly by 0.2%, following a decline of 0.2% in June. Loans for use outside Hong Kong shrank notably by 5.6%. Analysed by currency, Hong Kong dollar-denominated loans increased by 0.8% in July, while foreign currency loans declined by 4.8%. As Hong Kong dollar deposits and loans registered similar increases, the Hong Kong dollar loan-to-deposit ratio was unchanged at 91.6% in July, compared with the preceding month.

Money supply

Hong Kong dollar M1 increased by 2.1% in July. The rise was mainly a result of a 4.5% increase in demand deposits, which more than offset the decline in currency held by the public. Both Hong Kong dollar M2 and M3 increased by 0.5%. Compared with a year ago, Hong Kong dollar M1 rose by 10.4% in July, while Hong Kong dollar M2 and M3 increased by 4.5% and 4.6% respectively.

For further enquiries, please contact:

Thomas Chan, Senior Manager (Press), at 2878 1480 or

Caitlin Wong, Manager (Press), at 2878 1687

Hong Kong Monetary Authority

31 August 2000