Monetary Statistics for October 2021

According to statistics published today (30 November) by the Hong Kong Monetary Authority, total deposits with authorized institutions increased by 0.2% in October 2021. Among the total, Hong Kong dollar deposits remained virtually unchanged and overall foreign currency deposits increased by 0.4%. In the year to end-October, total deposits and Hong Kong dollar deposits grew by 3.6% and 2.3% respectively. Renminbi deposits in Hong Kong decreased by 2.5% to RMB834.9 billion at the end of October. The total remittance of renminbi for cross-border trade settlement amounted to RMB498.7 billion in October, compared with RMB623.6 billion in September.

Total loans and advances decreased by 0.3% in October, but picked up by 4.7% in the year to end-October. Among the total, loans for use in Hong Kong (including trade finance) and loans for use outside Hong Kong decreased by 0.2% and 0.6% respectively. The Hong Kong dollar loan-to-deposit ratio increased to 84.9% at the end of October from 84.7% at the end of September, as Hong Kong dollar loans increased while Hong Kong dollar deposits remained virtually unchanged.

Hong Kong dollar M2 and M3 both edged up by 0.1% in October, but dropped by 10.1% and 10.0% respectively compared to a year ago. The seasonally-adjusted Hong Kong dollar M1 decreased by 0.6% in October, but picked up 10.6% compared to a year ago, reflecting in part investment-related activities. Total M2 and M3 both remained virtually unchanged in October, but declined by 4.3% and 4.2% respectively from a year earlier. Large-scale IPO activities at the end of October 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 October both edged down by 0.2% compared to a year ago; total M2 and M3 both picked up by 1.1% 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 November 2021