Monetary Statistics for October 2019

The following is issued on behalf of the Hong Kong Monetary Authority:

     According to statistics published today (November 29) by the Hong Kong Monetary Authority, total deposits with authorised institutions grew by 1.0 per cent in October 2019 as compared to September. Among the total, Hong Kong dollar deposits and overall foreign-currency deposits increased by 0.4 per cent, and 1.6 per cent respectively. Renminbi deposits in Hong Kong increased by 2.1 per cent to RMB636.4 billion at the end of October. The total remittance of renminbi for cross-border trade settlement amounted to RMB429.4 billion in October, compared with RMB458.2 billion in September.
     Total loans and advances increased by 0.4 per cent in October. Among the total, loans for use in Hong Kong (including trade finance) increased by 0.1 per cent and loans for use outside Hong Kong went up by 1.0 per cent from a month ago. (Note) The Hong Kong dollar loan-to-deposit ratio edged up to 90.7 per cent at the end of October from 90.6 per cent at the end of September, as Hong Kong dollar loans increased at a faster pace than Hong Kong dollar deposits.
     Hong Kong dollar M2 and M3 both increased by 0.4 per cent on a month-on-month basis, and rose by 2.8 per cent and 2.7 per cent respectively compared to a year ago. The seasonally-adjusted Hong Kong dollar M1 increased by 0.4 per cent in October from September; on year-on-year terms the decline narrowed to 2.2 per cent from 3.4 per cent a month ago, reflecting in part investment-related activities. Total M2 and M3 both increased by 1.1 per cent in October, and expanded by 4.1 per cent and 4.0 per cent respectively from a year earlier.
     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.
Note: The December 2018 figures for loans for use in/outside Hong Kong have been restated to reflect authorised institutions' reclassification of working capital loans. The reported month-on-month and quarter-on-quarter growth rates are calculated based on the reclassified loan data. As reclassified loan data before December 2018 are not available, year-on-year growth rates of loans for use in/outside Hong Kong (including their sub-components) as shown in Table 1H of the Annex are calculated based on the data without such reclassification.

Ends/Friday, November 29, 2019
Issued at HKT 16:30