Monetary statistics for June 2022
According to statistics published today (July 29) by the Hong Kong Monetary Authority, total deposits with authorized institutions increased by 0.3 per cent in June 2022. Among the total, Hong Kong dollar deposits increased by 1.3 per cent while foreign currency deposits decreased by 0.6 per cent. For the first half of 2022 as a whole, total deposits rose by 0.4 per cent and Hong Kong dollar deposits rose by 2.3 per cent. Renminbi deposits in Hong Kong decreased by 4.2 per cent in June to RMB815.0 billion at the end of June. The total remittance of renminbi for cross-border trade settlement amounted to RMB835.9 billion in June, compared with RMB777.3 billion in May. It should be noted that changes in deposits are affected by a wide range of factors, such as interest rate movements and fund-raising activities. It is therefore more appropriate to observe the longer-term trends, and not to over-generalise fluctuations in a single month.
Total loans and advances decreased by 0.2 per cent in June, but increased by 0.8 per cent in the first half of 2022. Among the total, loans for use in Hong Kong (including trade finance) rose marginally by 0.1 per cent in June while loans for use outside Hong Kong decreased by 0.9 per cent. The Hong Kong dollar loan-to-deposit ratio increased to 86.8 per cent at the end of June from 86.5 per cent at the end of May, as Hong Kong dollar loans increased at a faster pace than Hong Kong dollar deposits.
For the second quarter of 2022 as a whole, loans for use in Hong Kong (including trade finance) rose marginally by 0.1 per cent following a 2.0 per cent increase in the previous quarter. Analysed by economic use, the loans to stockbrokers and wholesale and retail trade increased, while the loans to building, construction, property development and investment decreased.
Hong Kong dollar M2 and M3 both rose by 1.3 per cent in June while they both declined by 2.8 per cent when compared to a year ago. Large-scale IPO activities at the end of June 2021 led to a high base effect on the year-on-year growth of money supply. Excluding the deposits created by the IPO-related loans, Hong Kong dollar M2 and M3 in June both increased by 0.6 per cent compared to a year ago. The seasonally-adjusted Hong Kong dollar M1 rose by 0.3 per cent in June, while it decreased by 3.5 per cent compared to a year ago, reflecting in part investment-related activities. Total M2 and M3 both rose by 0.4 per cent in June, and both also increased by 0.4 per cent from a year earlier. Excluding the deposits created by the IPO-related loans, total M2 and M3 both picked up by 2.2 per cent 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.
Ends/Friday, July 29, 2022
Issued at HKT 16:32
Issued at HKT 16:32