Monetary Statistics for May 2020

According to statistics published today (Tuesday) by the Hong Kong Monetary Authority, total deposits with authorized institutions decreased by 0.3% in May 2020. Among the total, Hong Kong dollar deposits edged up by 0.1% while overall foreign currency deposits declined by 0.6%. Renminbi deposits in Hong Kong increased by 6.2% to RMB694.9 billion at the end of May. The total remittance of renminbi for cross-border trade settlement amounted to RMB521.5 billion in May, compared with RMB540.2 billion in April.

It should be noted that changes in deposits are affected by a wide range of factors, such as interest rate movements, fund-raising activities and investors’ allocation of funds. Fluctuations in monthly deposit changes are therefore normal. There was a rebound in total deposits according to the latest data up to the first three weeks of June.

Total loans and advances decreased by 0.3% in May. Among the total, loans for use in Hong Kong (including trade finance) and loans for use outside Hong Kong dropped by 0.2% and 0.5% respectively from a month ago. The Hong Kong dollar loan-to-deposit ratio decreased to 88.4% at the end of May from 88.7% at the end of April, as Hong Kong dollar deposits increased while Hong Kong dollar loans decreased.

Hong Kong dollar M2 and M3 both edged up by 0.1% in May, and increased by 0.2% and 0.1% respectively compared to a year ago. The seasonally-adjusted Hong Kong dollar M1 rose by 3.0% in May, and grew by 3.5% compared to a year ago, reflecting in part investment-related activities. Total M2 and M3 both declined by 0.4% in May, but picked up by 2.4% and 2.3% 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
30 June 2020