According to statistics published today (Monday) by the Hong Kong Monetary Authority, total deposits with authorized institutions increased by 0.9% in June 2017. As the increase in savings and time deposits exceeded the decrease in demand deposits, Hong Kong-dollar deposits expanded by 1.4% during the month. Overall foreign-currency deposits increased by 0.4% in June. Renminbi deposits in Hong Kong edged up by 0.2% to RMB526.1 billion at the end of June. The total remittance of renminbi for cross-border trade settlement amounted to RMB372.5 billion in June, compared with RMB287.2 billion in May.
Total loans and advances rose by 1.9% in June. Among the total, loans for use in Hong Kong (including trade finance) went up by 2.6% from a month ago, and loans for use outside Hong Kong increased by 0.3%. As Hong Kong-dollar loans grew at a faster pace than Hong Kong-dollar deposits, the Hong Kong-dollar loan-to-deposit ratio increased to 77.1% at the end of June from 75.9% at the end of May.
In the second quarter of 2017, loans for use in Hong Kong (including trade finance) expanded by 5.2% after growing by 4.0% in the previous quarter. Analysed by economic use, the quarterly increase in loans was mainly led by loans to financial concerns and loans to building, construction, property development and investment.
Seasonally adjusted Hong Kong-dollar M1 decreased by 0.5% in June but expanded by 12.9% year on year. Seasonally unadjusted Hong Kong-dollar M3 increased by 1.3% during the month and rose by 15.9% from a year earlier.
Hong Kong Monetary Authority
31 July 2017