Hong Kong Monetary Authority Reports 0.6% Increase in Total Deposits for July 2024

According
to
statistics
published
by
the
Hong
Kong
Monetary
Authority
(HKMA),
total
deposits
with
authorized
institutions
saw
a
0.6%
increase
in
July
2024.
This
growth
includes
both
Hong
Kong
dollar
and
foreign
currency
deposits,
which
rose
by
0.2%
and
0.9%
respectively.

Deposit
Trends
and
Renminbi
Activity

Over
the
year
leading
up
to
the
end
of
July,
total
deposits
grew
by
3.8%,
while
Hong
Kong
dollar
deposits
increased
by
1.3%.
However,
Renminbi
deposits
in
Hong
Kong
experienced
a
slight
decline
of
0.4%,
settling
at
RMB1,057.5
billion
by
the
end
of
the
month.
The
total
remittance
of
Renminbi
for
cross-border
trade
settlement
was
RMB1,281.5
billion
in
July,
up
from
RMB1,260.8
billion
in
June.

The
HKMA
emphasized
that
deposit
changes
are
influenced
by
various
factors,
including
interest
rate
movements
and
fundraising
activities.
Therefore,
longer-term
trends
should
be
prioritized
over
short-term
monthly
fluctuations.

Loans
and
Advances

Total
loans
and
advances
decreased
by
1.0%
in
July
and
by
2.9%
for
the
year
up
to
the
end
of
July.
Loans
for
use
in
Hong
Kong,
including
trade
finance,
fell
by
1.4%,
while
loans
for
use
outside
of
Hong
Kong
increased
by
0.3%.
Consequently,
the
Hong
Kong
dollar
loan-to-deposit
ratio
dropped
to
80.0%
at
the
end
of
July
from
81.3%
at
the
end
of
June.

Monetary
Aggregates

Hong
Kong
dollar
M2
and
M3
both
rose
by
0.3%
in
July
and
by
2.0%
compared
to
the
same
period
last
year.
The
seasonally-adjusted
Hong
Kong
dollar
M1
increased
by
2.8%
in
July,
although
it
decreased
by
3.0%
year-on-year,
partly
due
to
investment-related
activities.
Total
M2
and
M3
both
experienced
a
0.7%
increase
in
July
and
a
7.1%
increase
compared
to
a
year
earlier.

The
HKMA
cautioned
that
monthly
monetary
statistics
are
subject
to
volatilities
arising
from
various
transient
factors
such
as
seasonal
demands,
IPO-related
funding
requirements,
and
business
and
investment
activities.
Therefore,
careful
interpretation
of
the
data
is
advised.

For
more
detailed
information,
the
full
report
can
be
accessed
on
the

Hong
Kong
Monetary
Authority
website.

Image
source:
Shutterstock