According to statistics published today (31 January 2001) by the Hong Kong Monetary Authority, total deposits increased, while loans and advances of all authorized institutions declined during the month of December. Table 1 provides a summary and comparison with earlier months.
Deposits
Total deposits rose by 0.7% in December. The rise was across-the-board, with Hong Kong dollar, US dollar and non-US dollar foreign currency deposits all increasing.
Hong Kong dollar deposits increased for the second consecutive month, up by 0.8% in December. This was mainly attributable to a rise in savings deposits and time deposits, which more than offset a decline in demand deposits. Foreign currency deposits rose by 0.7% during the month. Of the total, US dollar deposits increased by 0.2%, while non-US dollar deposits rose more notably by 1.6%.
Loans and advances
Total loans and advances shrank by 2.0% in December. Domestic loans declined by 1.2%, following a rise in the preceding month. Meanwhile, loans for use outside Hong Kong contracted by 5.1%.
Analyzed by currency, both Hong Kong dollar denominated loans and foreign currency loans declined in December. As Hong Kong dollar deposits rose while Hong Kong dollar loans declined, the Hong Kong dollar loan-to-deposit ratio fell slightly to 89.4% in December.
Money supply
On a seasonally adjusted basis, Hong Kong dollar M1 declined by 1.3% in December. Of the total, demand deposits contracted by 2.7%, while currency held by the public rose by 0.5%. Unadjusted Hong Kong dollar M1 increased by 0.9% in December, while both Hong Kong dollar M2 and M3 rose by 0.7%. Compared with a year ago, Hong Kong dollar M1 declined by 0.7% in December, while Hong Kong dollar M2 and M3 increased by 3.9% and 4.0% respectively.
Quarterly analysis of loans for use in Hong Kong by major economic sectors
Analyzed by economic use, reflecting keen competition in some segments of the personal loan sector, credit card advances saw the largest quarter-on-quarter rise (9%) in the fourth quarter of 2000. Loans for building, construction, property development and investment rose modestly by 1.9%, while loans for residential mortgages increased by 1.0%. Loans for stockbrokers and financial concerns nevertheless declined notably by 16.2% and 10.3% respectively during the quarter, along with corrections in the equity market. Loans for trade financing shrank by around 10%. Meanwhile, loans for wholesale and retail trade contracted by 5.7%, reflecting a consolidation in retail sales.
For further enquiries, please contact:
Caitlin Wong, Manager (Press), at 2878 1687 or
Thomas Chan, Senior Manager (Press), at 2878 1480
Hong Kong Monetary Authority
31 January 2001
