Hong Kong Monetary Authority Reports 1.1% Increase in May 2024 Deposits

According
to
the
Hong
Kong
Monetary
Authority
(HKMA),
total
deposits
with
authorized
institutions
in
Hong
Kong
saw
an
increase
of
1.1%
in
May
2024.
The
data,
released
on
June
28,
highlights
that
Hong
Kong
dollar
deposits
grew
by
0.3%
while
foreign
currency
deposits
rose
by
1.8%.

Deposit
Growth
and
Renminbi
Trends

As
of
the
end
of
May,
total
deposits
had
grown
by
3.2%
year-to-date,
with
Hong
Kong
dollar
deposits
increasing
by
0.9%.
Notably,
renminbi
deposits
in
Hong
Kong
surged
by
4.2%,
reaching
RMB1,134.0
billion.
This
rise
is
largely
attributed
to
corporate
fund
flows.
However,
the
total
remittance
of
renminbi
for
cross-border
trade
settlement
decreased
to
RMB1,183.2
billion
in
May
from
RMB1,257.0
billion
in
April.

The
HKMA
emphasized
that
deposit
changes
are
influenced
by
multiple
factors,
including
interest
rate
movements
and
fundraising
activities.
Thus,
longer-term
trends
should
be
observed
rather
than
drawing
conclusions
from
monthly
fluctuations.

Loans
and
Advances

In
contrast
to
the
growth
in
deposits,
total
loans
and
advances
fell
by
0.4%
in
May
and
by
2.4%
over
the
year
to
end-May.
Loans
for
use
in
Hong
Kong,
including
trade
finance,
decreased
by
0.3%,
while
loans
for
use
outside
Hong
Kong
dropped
by
0.7%.
Consequently,
the
Hong
Kong
dollar
loan-to-deposit
ratio
declined
to
81.4%
at
the
end
of
May
from
82.1%
at
the
end
of
April.

Monetary
Aggregates

Hong
Kong
dollar
M2
and
M3
both
saw
a
0.4%
increase
in
May,
with
a
1.5%
rise
compared
to
the
same
period
last
year.
The
seasonally
adjusted
Hong
Kong
dollar
M1,
however,
decreased
by
0.1%
in
May
and
by
8.4%
year-on-year,
partly
due
to
investment-related
activities.
Total
M2
and
M3
increased
by
1.2%
in
May
and
by
7.8%
year-on-year.

The
HKMA
cautioned
that
monthly
monetary
statistics
could
be
volatile
due
to
various
transient
factors,
such
as
seasonal
demands,
IPO-related
funding,
and
business
or
investment
activities.
Therefore,
careful
interpretation
is
required
when
analyzing
these
statistics.

For
more
detailed
information,
the
full
report
is
available
on
the

Hong
Kong
Monetary
Authority
website.

Image
source:
Shutterstock