Hong Kong Monetary Authority Reports October 2024 Monetary Statistics
Deposit and Currency Movements
According to the Hong Kong Monetary Authority (HKMA), the monetary statistics for October 2024 indicate that total deposits with authorized institutions have remained largely unchanged. Notably, Hong Kong dollar deposits experienced a modest increase of 0.4%, whereas foreign currency deposits saw a slight decline of 0.3% during the same period. Over the year leading to the end of October, total deposits and Hong Kong dollar deposits grew by 5.8% and 2.8%, respectively.
Renminbi Deposits and Remittance
Renminbi deposits in Hong Kong decreased by 5.8% in October, standing at RMB957.8 billion by the month's end. This decline is primarily attributed to corporate fund flows. Additionally, the total remittance of renminbi for cross-border trade settlement amounted to RMB1,218.0 billion in October, a decrease from RMB1,267.2 billion in September.
Loans and Advances
Total loans and advances registered a decrease of 1.1% in October and a 3.2% decline over the year to the end of October. Loans for use both within and outside Hong Kong, including trade finance, fell by 1.1% in October. Consequently, the Hong Kong dollar loan-to-deposit ratio decreased from 78.4% at the end of September to 77.5% by the end of October, as Hong Kong dollar deposits increased while loans decreased.
Monetary Supply Metrics
The HKMA reported that both Hong Kong dollar M2 and M3 increased by 0.3% in October, with a year-on-year rise of 3.7%. The seasonally-adjusted Hong Kong dollar M1 rose by 1.2% in October, reflecting investment-related activities, and showed a 3.4% increase from the previous year. Total M2 and M3 both increased by 0.2% in October and by 8.6% compared to a year earlier.
Statistical Volatility Considerations
The HKMA cautions that monthly monetary statistics are influenced by various transient factors, including seasonal variations, IPO-related funding demand, and business and investment activities. Therefore, it advises observing long-term trends rather than drawing conclusions from short-term fluctuations.
For more detailed information, refer to the official announcement by the Hong Kong Monetary Authority.