Monetary Statistics for May 2022

According to statistics published today (30 June) by the Hong Kong Monetary Authority, total deposits with authorized institutions decreased by 0.7% in May 2022. Among the total, Hong Kong dollar deposits and foreign currency deposits decreased by 0.6% and 0.9% respectively, driven by fund flows of corporates. In the year to end-May, total deposits remained virtually unchanged and Hong Kong dollar deposits rose by 1.0%. Renminbi deposits in Hong Kong increased by 1.0% in May to RMB850.4 billion at the end of May. The total remittance of renminbi for cross-border trade settlement amounted to RMB777.3 billion in May, compared with RMB742.5 billion in April. 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 increased by 0.5% in May, and grew by 1.0% in the year to end-May. Among the total, loans for use in Hong Kong (including trade finance) and loans for use outside Hong Kong increased by 0.6% and 0.1% respectively in May. The Hong Kong dollar loan-to-deposit ratio increased to 86.5% at the end of May from 85.6% at the end of April, as Hong Kong dollar deposits decreased while Hong Kong dollar loans increased.

Hong Kong dollar M2 and M3 both declined by 0.7% in May. Compared to a year ago, Hong Kong dollar M2 remained virtually unchanged while Hong Kong dollar M3 edged down by 0.1%. The seasonally-adjusted Hong Kong dollar M1 decreased by 2.5% in May, and decreased by 0.8% compared to a year ago, reflecting in part investment-related activities. Total M2 and M3 both dropped by 0.7% in May, but both increased by 1.9% 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
30 June 2022