Monetary Statistics for February 2020

According to statistics published today (Tuesday) by the Hong Kong Monetary Authority, total deposits with authorized institutions edged down by 0.1% in February 2020. Among the total, Hong Kong dollar deposits declined by 0.5%, while overall foreign-currency deposits increased by 0.3%. Renminbi deposits in Hong Kong increased by 4.3% to RMB638.7 billion at the end of February. The total remittance of renminbi for cross-border trade settlement amounted to RMB481.0 billion in February, compared with RMB404.7 billion in January.

Total loans and advances increased by 0.5% in February. Among the total, loans for use in Hong Kong (including trade finance) went up by 0.9% and loans for use outside Hong Kong decreased by 0.3% from a month ago. The Hong Kong-dollar loan-to-deposit ratio edged up to 89.9% at the end of February from 89.4% at the end of January, as Hong Kong-dollar deposits decreased while Hong Kong-dollar loans stayed virtually unchanged.

Hong Kong dollar M2 and M3 both declined by 0.5% in February, but grew by 1.9% and 1.8% respectively compared to a year ago. The seasonally-adjusted Hong Kong dollar M1 rose by 1.3% in February, and increased by 0.4% compared to a year ago, reflecting in part investment-related activities. Total M2 and M3 both edged up by 0.1% in February, and expanded by 2.3% and 2.2% respectively from a year earlier.

As monthly monetary statistics are subject to volatilities due to a wide range of transient factors, such as seasonal and IPO-related funding demand as well as business and investment-related activities, caution is required when interpreting the statistics.

Annex

Hong Kong Monetary Authority
31 March 2020