Monetary Statistics for December 2022

According to statistics published today (31 January) by the Hong Kong Monetary Authority, total deposits with authorized institutions increased by 0.6% in December 2022. Among the total, Hong Kong dollar deposits increased by 1.2% while foreign currency deposits remained virtually unchanged. For 2022 as a whole, total deposits rose by 1.7% and Hong Kong dollar deposits increased by 0.7%. Renminbi deposits in Hong Kong decreased by 6.3% in December to RMB835.9 billion at the end of December. The total remittance of renminbi for cross-border trade settlement amounted to RMB804.8 billion in December, compared with RMB1,028.6 billion in November. 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 0.8% in December, and decreased by 3.0% for 2022 as a whole. Among the total, loans for use in Hong Kong (including trade finance) decreased by 0.4% in December and loans for use outside Hong Kong decreased by 2.0%. The Hong Kong dollar loan-to-deposit ratio decreased to 88.4% at the end of December from 89.6% at the end of November, as Hong Kong dollar deposits increased while Hong Kong dollar loans decreased.

For the fourth quarter of 2022 as a whole, loans for use in Hong Kong (including trade finance) decreased by 1.3% after declining by 0.8% in the previous quarter. Analysed by economic use, the decrease in loans during the fourth quarter was mainly led by trade finance.

Hong Kong dollar M2 and M3 both rose by 1.1% in December and both increased by 0.6% when compared to a year ago. The seasonally-adjusted Hong Kong dollar M1 decreased by 3.0% in December, and decreased by 17.8% compared to a year ago, reflecting in part investment-related activities. Total M2 and total M3 both rose by 0.8% in December. 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 January 2023