Monetary Statistics for August 2022

According to statistics published today (30 September) by the Hong Kong Monetary Authority, total deposits with authorized institutions remained virtually unchanged in August 2022. Among the total, Hong Kong dollar deposits decreased by 0.9% while foreign currency deposits increased by 0.9%, mainly reflecting fund flows of corporates. In the year to end-August, total deposits and Hong Kong dollar deposits both rose by 0.6%. Renminbi deposits in Hong Kong increased by 4.4% in August to RMB849.3 billion at the end of August. The total remittance of renminbi for cross-border trade settlement amounted to RMB794.2 billion in August, compared with RMB732.6 billion in July. 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 0.6% in August, and decreased slightly by 0.2% in the year to end-August. Among the total, loans for use in Hong Kong (including trade finance) decreased by 0.2% in August and loans for use outside Hong Kong decreased by 1.6%. The Hong Kong dollar loan-to-deposit ratio increased to 88.7% at the end of August from 87.5% at the end of July, as Hong Kong dollar loans increased while Hong Kong dollar deposits decreased.

Hong Kong dollar M2 and M3 both decreased by 0.8% in August while they both rose by 0.7% when compared to a year ago. The seasonally-adjusted Hong Kong dollar M1 decreased by 3.8% in August, and decreased by 6.0% compared to a year ago, reflecting in part investment-related activities. Total M2 and M3 both remained virtually unchanged in August. Compared to a year earlier, total M2 and total M3 both rose by 2.5%.

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 September 2022