Darius Baruo
Jul 31, 2024 11:40
The Hong Kong Monetary Authority reports stable total deposits and a slight increase in Hong Kong dollar deposits for June 2024.
According to statistics published by the Hong Kong Monetary Authority (HKMA) on July 31, total deposits with authorized institutions remained virtually unchanged in June 2024. Among the total, Hong Kong dollar deposits increased by 0.2% while foreign currency deposits decreased by 0.1%.
Hong Kong Dollar and Renminbi Deposits
For the first half of 2024, total deposits and Hong Kong dollar deposits grew by 3.2% and 1.1% respectively. However, renminbi deposits in Hong Kong decreased by 6.4% in June to RMB 1,061.7 billion, mainly reflecting corporate fund flows. The total remittance of renminbi for cross-border trade settlement amounted to RMB 1,260.8 billion in June, up from RMB 1,183.2 billion in May.
Loans and Advances
Total loans and advances increased by 0.5% in June but saw a 1.9% decrease for the first half of 2024. Loans for use in Hong Kong, including trade finance, increased by 1.2%, while loans for use outside Hong Kong decreased by 1.7% in June. The Hong Kong dollar loan-to-deposit ratio slightly decreased to 81.3% at the end of June from 81.4% at the end of May, as deposits grew faster than loans.
Quarterly Loan Analysis
For the second quarter of 2024, loans for use in Hong Kong, including trade finance, increased by 0.3% after a 1.2% decline in the previous quarter. Trade finance saw an uptick, while loans associated with building, construction, property development, and investment decreased.
Monetary Aggregates
Hong Kong dollar M2 and M3 both increased by 0.2% in June and by 1.5% compared to a year ago. The seasonally-adjusted Hong Kong dollar M1 decreased by 0.4% in June and by 5.9% compared to a year ago, partly due to investment-related activities. Total M2 and M3 both increased by 0.1% in June and by 7.4% year-on-year.
The HKMA cautioned that monthly monetary statistics are subject to volatilities due to various transient factors, such as seasonal and IPO-related funding demand as well as business and investment-related activities. Therefore, it is more appropriate to observe longer-term trends rather than over-generalize fluctuations in a single month.
For the full report, visit the Hong Kong Monetary Authority.
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