Monetary Statistics for January 2024

According to statistics published today (29 February) by the Hong Kong Monetary Authority, total deposits with authorized institutions decreased by 0.6% in January 2024.  Among the total, Hong Kong dollar deposits and foreign currency deposits decreased by 0.3% and 0.8% respectively in January, mainly reflecting fund flows of corporates.  Renminbi deposits in Hong Kong increased by 1.7% in January to RMB954.7 billion at the end of January.  The total remittance of renminbi for cross-border trade settlement amounted to RMB1,400.9 billion in January, compared with RMB1,270.2 billion in December.  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 January.  Among the total, loans for use in Hong Kong (including trade finance) decreased by 1.1% while loans for use outside Hong Kong remained virtually unchanged.  The Hong Kong dollar loan-to-deposit ratio stayed virtually unchanged at 84.2% at the end of January, as Hong Kong dollar loans and Hong Kong dollar deposits decreased at the same pace.

Hong Kong dollar M2 and M3 both decreased by 0.2% in January and both decreased by 0.7% when compared to a year ago.  The seasonally-adjusted Hong Kong dollar M1 decreased by 4.6% in January and decreased by 13.8% compared to a year ago, reflecting in part investment-related activities.  Total M2 and total M3 both decreased by 0.5% in January.  Compared to a year earlier, total M2 and total M3 both increased by 2.1%.  

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 February 2024