Monetary Statistics for August 2021

According to statistics published today (30 September) by the Hong Kong Monetary Authority, total deposits with authorized institutions edged down slightly by 0.1% in August 2021. Among the total, Hong Kong dollar deposits declined by 0.3%, while overall foreign currency deposits increased by 0.2%. In the year to end-August, total deposits and Hong Kong dollar deposits grew by 2.7% and 2.0% respectively. Renminbi deposits in Hong Kong increased by 2.7% to RMB842.7 billion at the end of August. The total remittance of renminbi for cross-border trade settlement amounted to RMB626.1 billion in August, compared with RMB627.1 billion in July.

Total loans and advances increased by 0.3% in August, and grew by 4.6% in the year to end-August. Among the total, loans for use in Hong Kong (including trade finance) and loans for use outside Hong Kong increased by 0.1% and 0.8% respectively. The Hong Kong dollar loan-to-deposit ratio increased to 84.2% at the end of August from 83.7% at the end of July, as Hong Kong dollar deposits decreased while Hong Kong dollar loans increased.

Hong Kong dollar M2 and M3 both declined by 0.3% in August, and dropped by 2.9% and 3.0% respectively compared to a year ago. The seasonally-adjusted Hong Kong dollar M1 decreased by 3.5% in August, but rose by 10.8% compared to a year ago, reflecting in part investment-related activities. Total M2 and M3 both edged down by 0.1% in August, but rose by 0.4% from a year earlier. Large-scale IPO activities at the end of August 2020 led to an increase in deposits that resulted in a high base effect on the year-on-year growth of money supply. Excluding the deposits created by the IPO-related loans, Hong Kong dollar M2 and M3 in August both grew by 2.3% compared to a year ago; total M2 and M3 both picked up by 3.2% 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 September 2021