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According to the Hong Kong Monetary Authority (HKMA), total deposits with authorized institutions in Hong Kong saw an increase of 1.1% in May 2024. The data, released on June 28, highlights that Hong Kong dollar deposits grew by 0.3% while foreign currency deposits rose by 1.8%.<\/p>\n
Deposit Growth and Renminbi Trends<\/h2>\n
As of the end of May, total deposits had grown by 3.2% year-to-date, with Hong Kong dollar deposits increasing by 0.9%. Notably, renminbi deposits in Hong Kong surged by 4.2%, reaching RMB1,134.0 billion. This rise is largely attributed to corporate fund flows. However, the total remittance of renminbi for cross-border trade settlement decreased to RMB1,183.2 billion in May from RMB1,257.0 billion in April.<\/p>\n
The HKMA emphasized that deposit changes are influenced by multiple factors, including interest rate movements and fundraising activities. Thus, longer-term trends should be observed rather than drawing conclusions from monthly fluctuations.<\/p>\n
Loans and Advances<\/h2>\n
In contrast to the growth in deposits, total loans and advances fell by 0.4% in May and by 2.4% over the year to end-May. Loans for use in Hong Kong, including trade finance, decreased by 0.3%, while loans for use outside Hong Kong dropped by 0.7%. Consequently, the Hong Kong dollar loan-to-deposit ratio declined to 81.4% at the end of May from 82.1% at the end of April.<\/p>\n
Monetary Aggregates<\/h2>\n
Hong Kong dollar M2 and M3 both saw a 0.4% increase in May, with a 1.5% rise compared to the same period last year. The seasonally adjusted Hong Kong dollar M1, however, decreased by 0.1% in May and by 8.4% year-on-year, partly due to investment-related activities. Total M2 and M3 increased by 1.2% in May and by 7.8% year-on-year.<\/p>\n
The HKMA cautioned that monthly monetary statistics could be volatile due to various transient factors, such as seasonal demands, IPO-related funding, and business or investment activities. Therefore, careful interpretation is required when analyzing these statistics.<\/p>\n
For more detailed information, the full report is available on the Hong Kong Monetary Authority<\/a> website.<\/p>\n