money supply

The total stock of money available in the economy. Hong Kong has three measures of money supply:

Money Supply definition 1 (M1): The sum of legal tender notes and coins held by the public plus customers' demand deposits placed with banks.

Money Supply definition 2 (M2): M1 plus customers' savings and time deposits with banks plus negotiable certificates of deposit (NCDs) issued by banks held outside the banking sector.

Money Supply definition 3 (M3): M2 plus customers' deposits with restricted licence banks and deposit-taking companies plus NCDs issued by these institutions held outside the banking sector.

Among these three series, HK$M1 exhibits a significant seasonal pattern, whereas there is no strong evidence of seasonality in broad money (HK$M2 and HK$M3). Seasonally adjusted series of HK$M1 and its components (i.e. cash held by the public and demand deposits) are compiled and published by the HKMA.