Monetary Statistics for May 2024

According to statistics published today (28 June) by the Hong Kong Monetary Authority, total deposits with authorized institutions increased by 1.1% in May 2024.  Among the total, Hong Kong dollar deposits and foreign currency deposits increased by 0.3% and 1.8% respectively in May.  In the year to end-May, total deposits and Hong Kong dollar deposits grew by 3.2% and 0.9% respectively.  Renminbi deposits in Hong Kong increased by 4.2% in May to RMB1,134.0 billion at the end of May, mainly reflecting fund flows of corporates.  The total remittance of renminbi for cross-border trade settlement amounted to RMB1,183.2 billion in May, compared with RMB1,257.0 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 0.4% in May, and decreased by 2.4% 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 0.3% and 0.7% respectively in May.  The Hong Kong dollar loan-to-deposit ratio decreased to 81.4% at the end of May from 82.1% at the end of April, as Hong Kong dollar deposits increased while Hong Kong dollar loans decreased.

Hong Kong dollar M2 and M3 both increased by 0.4% in May and both increased by 1.5% when compared to a year ago.  The seasonally-adjusted Hong Kong dollar M1 decreased by 0.1% in May and decreased by 8.4% compared to a year ago, reflecting in part investment-related activities.  Total M2 and total M3 both increased by 1.2% in May.  Compared to a year earlier, total M2 and total M3 both increased by 7.8%.  

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
28 June 2024