The Hong Kong Monetary Authority (HKMA) published its monetary statistics for September 2024, revealing a 0.8% increase in total deposits with authorized institutions. This growth encompasses a 0.9% rise in Hong Kong dollar deposits and a 0.6% increase in foreign currency deposits.

Deposit Growth and Renminbi Activity

According to data released on October 31, 2024, by the HKMA, total deposits have grown by 5.8% in the year leading up to September, with Hong Kong dollar deposits specifically increasing by 2.5%. Renminbi deposits in Hong Kong saw a modest rise of 0.2%, reaching RMB 1,016.3 billion by the end of September. Additionally, the total remittance of renminbi for cross-border trade settlement slightly decreased from RMB 1,267.9 billion in August to RMB 1,267.2 billion in September.

Loan Dynamics

Total loans and advances experienced a 0.5% increase in September, although they have decreased by 2.1% year-to-date. Loans for use within Hong Kong, including trade finance, and loans for use outside Hong Kong both saw a 0.5% and 0.8% increase, respectively, in September. The Hong Kong dollar loan-to-deposit ratio declined from 79.3% in August to 78.4% at the end of September, attributed to the rise in Hong Kong dollar deposits and a decrease in loans.

Monetary Aggregates

The HKMA reported that both Hong Kong dollar M2 and M3 increased by 0.9% in September, showing an annual growth of 3.0%. The seasonally-adjusted Hong Kong dollar M1 rose by 3.6% in September, reflecting investment-related activities. Overall, total M2 and M3 rose by 0.6% during the month and by 8.5% when compared to the previous year.

Interpreting the Data

The HKMA cautions that monthly monetary statistics are prone to volatility due to various transient factors, such as seasonal demands, IPO-related funding, and other business activities. Therefore, analyzing long-term trends is recommended over generalizing single-month fluctuations.

For more detailed insights, the full report is available on the Hong Kong Monetary Authority website.

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