Monetary Statistics for August 2023

According to statistics published today (29 September) by the Hong Kong Monetary Authority, total deposits with authorized institutions increased by 0.6% in August 2023.  Among the total, Hong Kong dollar deposits and foreign currency deposits increased by 0.4% and 0.8% respectively in August.  In the year to end-August, total deposits and Hong Kong dollar deposits grew by 2.0% and 1.9% respectively.  Renminbi deposits in Hong Kong increased by 6.0% in August to RMB962.5 billion at the end of August, mainly reflecting fund flows of corporates.    The total remittance of renminbi for cross-border trade settlement amounted to RMB1,121.2 billion in August, compared with RMB1,022.1 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 0.3% in August, and decreased by 1.7% in the year to end-August.  Among the total, loans for use in Hong Kong (including trade finance) and loans for use outside Hong Kong decreased by 0.2% and 0.5% respectively in August.  The Hong Kong dollar loan-to-deposit ratio decreased to 87.1% at the end of August from 87.8% at the end of July, as Hong Kong dollar deposits increased while Hong Kong dollar loans decreased.

Hong Kong dollar M2 and M3 both rose by 0.3% in August and both increased by 1.4% when compared to a year ago.  The seasonally-adjusted Hong Kong dollar M1 decreased by 0.4% in August and decreased by 18.5% compared to a year ago, reflecting in part investment-related activities.  Total M2 and total M3 both increased by 0.4% in August.  Compared to a year earlier, total M2 and total M3 both increased by 2.8%.  

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
29 September 2023