Hong Kong Monetary Authority Reports November 2024 Monetary Statistics

The Hong Kong Monetary Authority (HKMA) has released its monetary statistics for November 2024, revealing a 0.3% increase in total deposits with authorized institutions. This growth is attributed to a significant 1.3% rise in foreign currency deposits, which offset a 0.9% decrease in Hong Kong dollar deposits. The variations in currency deposits were primarily driven by fund flows of corporates, according to the HKMA.

Deposit Trends and Renminbi Activity

Year-to-date figures through the end of November show a 6.1% increase in total deposits and a 1.9% rise in Hong Kong dollar deposits. Renminbi deposits in Hong Kong also saw a notable increase of 3.5%, reaching RMB 991.8 billion by the end of November. The total remittance of renminbi for cross-border trade settlement surged to RMB 1,333.7 billion, up from RMB 1,218.0 billion in October. These changes highlight the dynamic nature of the monetary environment, influenced by factors such as interest rate movements and corporate fund-raising activities.

Loan Activity and Financial Ratios

On the lending front, total loans and advances grew by a marginal 0.1% in November but experienced a 3.1% decline over the year to end-November. Loans for use both within and outside Hong Kong increased by 0.1% during the month. The Hong Kong dollar loan-to-deposit ratio rose slightly to 78.0% from 77.5% in October, reflecting a more significant decrease in deposits compared to loans.

Monetary Aggregates and Market Volatility

Monetary aggregates such as Hong Kong dollar M2 and M3 fell by 0.8% in November but showed annual increases of 2.3% and 2.4%, respectively. The seasonally-adjusted Hong Kong dollar M1 decreased by 1.7% in November but was up 1.6% compared to the previous year, partly due to investment-related activities. Total M2 and M3 both rose by 0.3% during November and recorded a 7.3% increase year-over-year.

Given the inherent volatility in monthly monetary statistics, often affected by transient factors like seasonal demands and IPO-related funding, the HKMA advises caution in interpreting these figures. Long-term trends provide a more stable understanding of the monetary landscape.

For a detailed breakdown of the statistics, please refer to the official HKMA release.