Monetary Statistics for September 2023

According to statistics published today (31 October) by the Hong Kong Monetary Authority, total deposits with authorized institutions increased by 0.2% in September 2023.  Among the total, Hong Kong dollar deposits decreased by 0.3% while foreign currency deposits increased by 0.7% in September.  In the year to end-September, total deposits and Hong Kong dollar deposits grew by 2.3% and 1.6% respectively.  Renminbi deposits in Hong Kong decreased by 1.0% in September to RMB952.6 billion at the end of September.    The total remittance of renminbi for cross-border trade settlement amounted to RMB1,002.5 billion in September, compared with RMB1,121.2 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 0.9% in September, and decreased by 2.6% in the year to end-September.  Among the total, loans for use in Hong Kong (including trade finance) and loans for use outside Hong Kong decreased by 0.6% and 1.8% respectively in September.  The Hong Kong dollar loan-to-deposit ratio decreased to 86.3% at the end of September from 87.1% at the end of August, as Hong Kong dollar loans decreased by a larger extent than Hong Kong dollar deposits.

For the third quarter of 2023 as a whole, loans for use in Hong Kong (including trade finance) decreased by 1.9% after declining by 0.4% in the previous quarter. Analysed by economic use, the decrease in loans during the third quarter was mainly led by loans to building, construction, property development and investment.

Hong Kong dollar M2 and M3 both decreased slightly by 0.2% in September while both increased by 2.3% when compared to a year ago.  The seasonally-adjusted Hong Kong dollar M1 decreased by 4.5% in September and decreased by 19.1% compared to a year ago, reflecting in part investment-related activities.  Total M2 and total M3 both remained virtually unchanged in September.  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
31 October 2023