Hong Kong Monetary Authority Reports 1.1% Increase in Total Deposits for August 2024
According to statistics published by the Hong Kong Monetary Authority (HKMA), total deposits with authorized institutions increased by 1.1% in August 2024. Among these, Hong Kong dollar deposits and foreign currency deposits saw increases of 0.2% and 2.0%, respectively.
Deposit Trends and Renminbi Movements
In the year leading up to the end of August, total deposits and Hong Kong dollar deposits grew by 5.0% and 1.5%, respectively. However, renminbi deposits in Hong Kong decreased by 4.1% in August, amounting to RMB1,014.1 billion at the end of the month. The total remittance of renminbi for cross-border trade settlement was RMB1,267.9 billion in August, slightly down from RMB1,281.5 billion in July. It is important to note that changes in deposits are influenced by various factors, including interest rate movements and fund-raising activities, thus long-term trends are more indicative than monthly fluctuations.
Loans and Advances
Total loans and advances saw a modest increase of 0.3% in August, but a decline of 2.7% over the year up to the end of August. Specifically, loans for use in Hong Kong, including trade finance, and loans for use outside Hong Kong increased by 0.2% and 0.6%, respectively. The Hong Kong dollar loan-to-deposit ratio fell to 79.3% at the end of August from 80.0% at the end of July, as increases in Hong Kong dollar deposits outpaced the decrease in Hong Kong dollar loans.
Monetary Aggregates
Both Hong Kong dollar M2 and M3 increased by 0.2% in August and by 1.9% compared to a year ago. The seasonally-adjusted Hong Kong dollar M1 decreased by 1.2% in August and was down by 3.7% year-over-year, reflecting investment-related activities. Total M2 and total M3 both increased by 1.1% in August and by 7.8% compared to the previous year.
The HKMA emphasizes that monthly monetary statistics can be volatile due to various transient factors, such as seasonal and IPO-related funding demand, as well as business and investment-related activities. Therefore, caution is required when interpreting these statistics.
For more detailed information, please refer to the Hong Kong Monetary Authority.