Monetary Statistics for January 2022

According to statistics published today (28 February) by the Hong Kong Monetary Authority, total deposits with authorized institutions increased by 2.6% in January 2022.  Among the total, Hong Kong dollar deposits and foreign currency deposits grew by 1.3% and 3.8% respectively. Renminbi deposits in Hong Kong increased by 18.2%, amounting to RMB1,095.9 billion at the end of January, largely driven by inflows from corporations.  The total remittance of renminbi for cross-border trade settlement amounted to RMB699.4 billion in January, compared with RMB708.5 billion in December 2021. 

Total loans and advances increased by 0.8% in January.  Among the total, loans for use in Hong Kong (including trade finance) and loans for use outside Hong Kong increased by 0.6% and 1.2% respectively.  The Hong Kong dollar loan-to-deposit ratio decreased to 85.7% at the end of January from 86.7% at the end of December 2021, as Hong Kong dollar deposits increased at a faster pace than Hong Kong dollar loans.

Hong Kong dollar M2 and M3 both grew by 1.4% in January, but both decreased by 12.2% compared to a year ago.  Large-scale IPO activities at the end of January 2021 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 January both decreased by 2.0% compared to a year ago. The seasonally-adjusted Hong Kong dollar M1 rose by 1.7% in January, and increased by 1.2% compared to a year ago, reflecting in part investment-related activities.  Total M2 and M3 both rose by 2.5% in January, but both decreased by 2.0% from a year earlier. Excluding the deposits created by the IPO-related loans, total M2 and M3 both picked up by 3.9% 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
28 February 2022