According to statistics published today (31 May) by the Hong Kong Monetary Authority, total deposits with authorized institutions decreased by 0.3% in April 2022. Among the total, Hong Kong dollar deposits decreased by 0.5%, while foreign currency deposits remained virtually unchanged. In the year to end-April, total deposits and Hong Kong dollar deposits grew by 0.8% and 1.6% respectively. Renminbi deposits in Hong Kong increased by 6.4% in April to RMB841.9 billion at the end of April. The total remittance of renminbi for cross-border trade settlement amounted to RMB742.5 billion in April, compared with RMB801.6 billion in March. 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.
Total loans and advances declined by 0.7% in April, but rose by 0.5% in the year to end-April. Among the total, loans for use in Hong Kong (including trade finance) and loans for use outside Hong Kong decreased by 0.6% and 0.9% respectively in April. The Hong Kong dollar loan-to-deposit ratio increased to 85.6% at the end of April from 85.2% at the end of March, as Hong Kong dollar deposits decreased at a faster pace than Hong Kong dollar loans.
Hong Kong dollar M2 and M3 both declined by 0.4% in April, but both went up by 1.2% compared to a year ago. The seasonally-adjusted Hong Kong dollar M1 decreased by 1.4% in April, but grew by 5.1% compared to a year ago, reflecting in part investment-related activities. Total M2 and M3 dropped by 0.3% and 0.2% respectively in April, but both increased by 3.7% 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.
Hong Kong Monetary Authority
31 May 2022