Monetary Statistics for September 2022

According to statistics published today (31 October) by the Hong Kong Monetary Authority, total deposits with authorized institutions remained virtually unchanged in September 2022. Among the total, Hong Kong dollar deposits decreased by 1.1% while foreign currency deposits increased by 1.2%, mainly reflecting fund flows of corporates and increased fund-raising activities. In the year to end-September, total deposits rose by 0.6% while Hong Kong dollar deposits decreased by 0.5%. Renminbi deposits in Hong Kong increased by 1.0% in September to RMB857.7 billion at the end of September.  The total remittance of renminbi for cross-border trade settlement amounted to RMB886.5 billion in September, compared with RMB794.2 billion in August. 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 0.5% in September, and decreased by 0.6% in the year to end-September. Among the total, loans for use in Hong Kong (including trade finance) edged down by 0.1% in September and loans for use outside Hong Kong decreased by 1.5%. The Hong Kong dollar loan-to-deposit ratio increased to 90.1% at the end of September from 88.7% at the end of August, as Hong Kong dollar loans increased while Hong Kong dollar deposits decreased.

For the third quarter of 2022 as a whole, loans for use in Hong Kong (including trade finance) decreased by 0.8% after edging up by 0.1% in the previous quarter. Analysed by economic use, the decrease in loans during the third quarter was mainly led by trade finance, and loans to building, construction, property development and investment.

Hong Kong dollar M2 and M3 both decreased by 1.1% in September and were both lower by 0.8% when compared to a year ago. The seasonally-adjusted Hong Kong dollar M1 decreased by 5.0% in September, and decreased by 11.3% compared to a year ago, reflecting in part investment-related activities. Total M2 edged down by 0.1% in September while total M3 remained virtually unchanged. Compared to a year earlier, total M2 and total M3 both rose by 1.6%.

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
31 October 2022