Monetary Statistics for January 2001

According to statistics published today (Wednesday) by the Hong Kong Monetary Authority, both total deposits and loans of all authorized institutions declined during the month of January. Table 1 provides a summary and comparison with earlier months.

Deposits

Total deposits dropped slightly by 1.2% in January. The fall was across the board, with Hong Kong dollar, US dollar and non-US dollar foreign currency deposits all declining.

Reflecting an increase in cash holdings by the non-bank public during the Chinese New Year holidays, Hong Kong dollar deposits declined marginally by 0.1% in January, following two consecutive months of growth. Foreign currency deposits contracted by 2.4% during the month. Of the total, US dollar deposits declined by 3.1%, while non-US dollar deposits dropped more moderately by 1.0%.

Loans and advances

Total loans and advances shrank slightly by 0.4% in January. Of the total, domestic loans increased by 0.2%, while loans for use outside Hong Kong contracted by 2.6%.

Analysed by currency, Hong Kong dollar denominated loans increased, while foreign currency loans declined in January. As Hong Kong dollar loans rose while Hong Kong dollar deposits dropped, the Hong Kong dollar loan-to-deposit ratio rose slightly to 89.9% in January.

Money supply

On a seasonally adjusted basis, Hong Kong dollar M1 declined slightly by 0.8% in January. Of the total, demand deposits and currency held by the public dropped by 0.5% and 1.2% respectively. Unadjusted Hong Kong dollar M1 rose notably by 6.0%, due mainly to a significant rise in currency held by the public (13.5%) during the Chinese New Year holidays. Both Hong Kong dollar M2 and M3 rose by 0.6% in January. Compared with a year ago, unadjusted Hong Kong dollar M1 declined by 0.6% in January, while both Hong Kong dollar M2 and M3 increased by 5.3%.

For further enquiries, please contact:

Jasmin Fung, Manager (Press), at 2878 8246 or
Caitlin Wong, Manager (Press), at 2878 1687

Hong Kong Monetary Authority
28 February 2001