Hong Kong Monetary Authority Reports 2.2% Increase in April Deposits
Increase in Total Deposits in April 2024
The Hong Kong Monetary Authority (HKMA) released its monetary statistics for April 2024, revealing a 2.2% increase in total deposits with authorized institutions. The data, which was published on May 31, indicates a 0.5% rise in Hong Kong dollar deposits and a 3.7% increase in foreign currency deposits for the month.
In the year to end-April, total deposits grew by 2.1%, while Hong Kong dollar deposits saw a 0.7% increase. A significant surge was observed in Renminbi deposits, which rose by 15.2% to RMB1,088.2 billion by the end of April. This increase is primarily attributed to corporate fund flows. Additionally, the total remittance of Renminbi for cross-border trade settlement amounted to RMB1,257.0 billion, up from RMB1,248.4 billion in March.
Loans and Advances Decline
Conversely, total loans and advances experienced a decline of 1.0% in April and a 2.0% decrease year-over-year. Loans for use in Hong Kong, including trade finance, fell by 0.6%, while loans for use outside Hong Kong dropped by 2.3%. The Hong Kong dollar loan-to-deposit ratio decreased to 82.1% at the end of April, down from 83.2% at the end of March, due to the increase in Hong Kong dollar deposits and a reduction in loans.
Monetary Aggregates Show Mixed Trends
The HKMA's data also revealed that Hong Kong dollar M2 and M3 both increased by 0.5% in April and maintained the same percentage increase compared to a year ago. The seasonally-adjusted Hong Kong dollar M1 saw a modest rise of 0.4% in April but decreased by 9.9% year-over-year, partly reflecting investment-related activities. Total M2 and total M3 both increased by 2.1% in April and by 5.5% and 5.6% respectively compared to the previous year.
Interpreting the Data
The HKMA cautioned that monthly monetary statistics are subject to volatilities caused by various transient factors, including seasonal and IPO-related funding demand, as well as business and investment activities. Therefore, it is advisable to observe longer-term trends rather than over-generalizing fluctuations within a single month.
For more detailed information, the full report can be accessed on the Hong Kong Monetary Authority website.