Monetary Statistics for January 2025

According to statistics published today (28 February) by the Hong Kong Monetary Authority, total deposits with authorized institutions increased by 1.4% in January 2025.  Among the total, Hong Kong dollar deposits and foreign currency deposits increased by 1.3% and 1.5% respectively in January.  Renminbi deposits in Hong Kong increased by 6.5% in January to RMB986.8 billion at the end of January, mainly reflecting fund flows of corporates.  The total remittance of renminbi for cross-border trade settlement amounted to RMB1,377.4 billion in January, compared with RMB1,401.6 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 0.2% in January.  Among the total, loans for use in Hong Kong (including trade finance) decreased by 0.5%, while loans for use outside Hong Kong increased by 0.6% in January.  The Hong Kong dollar loan-to-deposit ratio decreased to 75.7% at the end of January from 77.1% at the end of December, as Hong Kong dollar deposits increased while Hong Kong dollar loans decreased.

Hong Kong dollar M2 and M3 both increased by 1.5% in January, and both increased by 4.5% when compared to a year ago.  The seasonally-adjusted Hong Kong dollar M1 decreased by 3.0% in January while increased by 1.8% compared to a year ago, reflecting in part investment-related activities.  Total M2 and total M3 both increased by 1.6% in January.  Compared to a year earlier, total M2 and total M3 both increased by 9.6%.  

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 February 2025