Monetary Statistics for July 2023

According to statistics published today (31 August) by the Hong Kong Monetary Authority, total deposits with authorized institutions increased by 1.2% in July 2023.  Among the total, Hong Kong dollar deposits decreased by 0.2% while foreign currency deposits increased by 2.7% in July.  In the year to end-July, total deposits and Hong Kong dollar deposits grew by 1.4% and 1.5% respectively.  Renminbi deposits in Hong Kong increased by 0.1% in July to RMB907.9 billion at the end of July.  The total remittance of renminbi for cross-border trade settlement amounted to RMB1,022.1 billion in July, compared with RMB1,089.2 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 1.0% in July, and decreased by 1.5% in the year to end-July.  Among the total, loans for use in Hong Kong (including trade finance) and loans for use outside Hong Kong decreased by 1.1% and 0.6% respectively in July.  The Hong Kong dollar loan-to-deposit ratio decreased to 87.8% at the end of July from 88.7% at the end of June, as Hong Kong dollar loans decreased by a larger extent than Hong Kong dollar deposits.

Hong Kong dollar M2 and M3 both decreased slightly by 0.2% in July while both increased slightly by 0.3% when compared to a year ago.  The seasonally-adjusted Hong Kong dollar M1 decreased by 0.3% in July and decreased by 19.5% compared to a year ago, reflecting in part investment-related activities.  Total M2 and total M3 both increased by 1.0% in July.  Compared to a year earlier, total M2 and total M3 both rose by 2.3%.

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 August 2023