According to statistics published today (Friday) by the Hong Kong Monetary Authority, total deposits with authorized institutions decreased by 0.5% in September 2020. Among the total, Hong Kong dollar deposits and overall foreign currency deposits declined by 0.8% and 0.1% respectively. Renminbi deposits in Hong Kong decreased by 0.6% to RMB667.9 billion at the end of September. The total remittance of renminbi for cross-border trade settlement amounted to RMB593.1 billion in September, compared with RMB530.3 billion in August.
Total loans and advances declined by 0.8% in September. Among the total, loans for use in Hong Kong (including trade finance) and loans for use outside Hong Kong decreased by 1.1% and 0.3% respectively. The Hong Kong dollar loan-to-deposit ratio edged up to 85.2% at the end of September from 85.1% at the end of August, as Hong Kong dollar deposits decreased at a faster pace than Hong Kong dollar loans.
In September, changes in deposits and loans were partly driven by initial public offering (IPO) activities. Excluding IPO loans and the resulting creation of deposits, total deposits and Hong Kong dollar deposits both would have edged down only slightly by 0.2% in September, and total loans and advances would have decreased by 0.4% in September.
In the third quarter of 2020, loans for use in Hong Kong (including trade finance) went up by 4.7% following a 0.8% decline in the previous quarter. Analysed by economic use, the increase in loans during the third quarter was mainly led by loans to stockbrokers.
Hong Kong dollar M2 and M3 both declined by 0.7% in September, but grew by 10.8% and 10.7% respectively compared to a year ago. The seasonally-adjusted Hong Kong dollar M1 decreased by 0.8% in September, but expanded by 22.9% compared to a year ago, reflecting in part investment-related activities. Total M2 and M3 both edged down by 0.2% in September, but expanded by 9.2% from a year earlier. Excluding deposits created by IPO loans, Hong Kong dollar M2 and M3 both would have edged down by 0.1% in September, but increased by 5.7% compared to a year ago. Total M2 and M3 both would have edged up by 0.1% in September, and went up by 6.6% respectively compared to a year ago.
As monthly monetary statistics are subject to volatilities due to a wide range of transient factors, such as seasonal and IPO-related funding demand as well as business and investment-related activities, caution is required when interpreting the statistics.
Hong Kong Monetary Authority
30 October 2020
Release Schedule of Monetary Statistics in Hong Kong
The monthly release schedule of monetary statistics in Year 2021 is as follows.
Reference Month Release Date
January 2021 26 February 2021
February 2021 31 March 2021
March 2021 30 April 2021
April 2021 31 May 2021
May 2021 30 June 2021
June 2021 30 July 2021
July 2021 31 August 2021
August 2021 30 September 2021
September 2021 29 October 2021
October 2021 30 November 2021
November 2021 31 December 2021
December 2021 31 January 2022
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