According to statistics published today (31 August) by the Hong Kong Monetary Authority, total deposits with authorized institutions increased by 0.2% in July 2022. Among the total, Hong Kong dollar deposits decreased by 0.7% while foreign currency deposits increased by 1.2%, mainly reflecting fund flows of corporates. In the year to end-July, total deposits and Hong Kong dollar deposits rose by 0.6% and 1.6% respectively. Renminbi deposits in Hong Kong decreased by 0.2% in July to RMB813.7 billion at the end of July. The total remittance of renminbi for cross-border trade settlement amounted to RMB732.6 billion in July, compared with RMB835.9 billion in June. 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 decreased by 0.4% in July, but increased by 0.4% in the year to end-July. Among the total, loans for use in Hong Kong (including trade finance) decreased by 0.6% in July while loans for use outside Hong Kong edged up by 0.1%. The Hong Kong dollar loan-to-deposit ratio increased to 87.5% at the end of July from 86.8% at the end of June, as Hong Kong dollar loans increased while Hong Kong dollar deposits decreased.
Hong Kong dollar M2 and M3 both decreased by 0.6% in July while they both rose by 1.2% when compared to a year ago. The seasonally-adjusted Hong Kong dollar M1 decreased by 2.5% in July, and decreased by 5.6% compared to a year ago, reflecting in part investment-related activities. Total M2 and M3 both rose by 0.2% in July. Compared to a year earlier, total M2 and total M3 rose by 2.4% and 2.3% respectively.
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 August 2022