According to statistics published today (30 June) by the Hong Kong Monetary Authority, total deposits with authorized institutions decreased by 0.9% in May 2023. Among the total, Hong Kong dollar deposits and foreign currency deposits decreased by 0.7% and 1.1% respectively in May, mainly reflecting fund flows of corporates. In the year to end-May, total deposits decreased by 0.3% while Hong Kong dollar deposits grew by 1.5%. Renminbi deposits in Hong Kong increased by 7.1% in May to RMB891.7 billion at the end of May, mainly reflecting fund flows of corporates. The total remittance of renminbi for cross-border trade settlement amounted to RMB977.3 billion in May, compared with RMB725.3 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 decreased by 0.6% in May, and decreased by 0.5% 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 decreased by 0.2% and 1.8% respectively in May. The Hong Kong dollar loan-to-deposit ratio increased to 89.1% at the end of May from 88.7% at the end of April, as Hong Kong dollar deposits decreased by a larger extent than Hong Kong dollar loans.
Hong Kong dollar M2 and M3 both decreased by 0.7% in May and both rose by 1.0% when compared to a year ago. The seasonally-adjusted Hong Kong dollar M1 decreased by 1.9% in May and decreased by 19.9% compared to a year ago, reflecting in part investment-related activities. Total M2 and total M3 both decreased by 0.9% in May. Compared to a year earlier, total M2 and total M3 both rose by 1.5%.
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.
Hong Kong Monetary Authority
30 June 2023