Monetary Statistics for March 2022

According to statistics published today (29 April) by the Hong Kong Monetary Authority, total deposits with authorized institutions decreased by 0.3% in March 2022. Among the total, Hong Kong dollar deposits increased by 0.4% in March, while foreign currency deposits decreased by 1.1%. Driven by fund flows of corporates, after increasing significantly in December and January, renminbi deposits in Hong Kong dropped in February and March, decreasing by 12.7% in March to RMB791.3 billion at the end of March. The total remittance of renminbi for cross-border trade settlement amounted to RMB801.6 billion in March, compared with RMB500.7 billion in February. It should be noted that changes in deposits are affected by a wide range of factors, such as interest rate movements and fund-raising activities. It is therefore more appropriate to observe the longer-term trends, and not to over-generalise fluctuations in a single month. In the first quarter of 2022, total deposits and Hong Kong dollar deposits grew by 1.1% and 2.2% respectively.

Total loans and advances increased by 0.3% in March, and rose by 1.2% in the first quarter of 2022. Among the total, loans for use in Hong Kong (including trade finance) increased by 1.1% in March, while loans for use outside Hong Kong declined by 1.6%. The Hong Kong dollar loan-to-deposit ratio edged down to 85.2% at the end of March from 85.3% at the end of February, as Hong Kong dollar deposits increased at a faster pace than Hong Kong dollar loans.

For the first quarter of 2022, loans for use in Hong Kong (including trade finance) increased by 1.9% following a 0.7% decline in the previous quarter. Analysed by economic use, the increase in loans during the first quarter was mainly led by trade finance, and loans to building, construction, property development and investment.

Hong Kong dollar M2 and M3 both rose by 0.3% in March, and both increased by 1.0% compared to a year ago. Large-scale IPO activities at the end of March 2021 led to 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 March increased by 1.6% and 1.5% respectively compared to a year ago. The seasonally-adjusted Hong Kong dollar M1 declined by 1.1% in March, but grew by 6.9% compared to a year ago, reflecting in part investment-related activities. Total M2 and M3 both declined by 0.5% in March, but both increased by 4.0% from a year earlier. Excluding the deposits created by the IPO-related loans, total M2 and M3 both picked up by 4.3% 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
29 April 2022