Monetary statistics for February 2023

The following is issued on behalf of the Hong Kong Monetary Authority:
     According to statistics published today (March 31) by the Hong Kong Monetary Authority, total deposits with authorized institutions decreased by 1.6 per cent in February 2023 after increasing by 1.3 per cent in January. Among the total, Hong Kong dollar deposits and foreign currency deposits decreased by 1.1 per cent and 2.1 per cent respectively in February, mainly reflecting fund flows of corporates. In the first two months of 2023, total deposits decreased by 0.3 per cent while Hong Kong dollar deposits increased by 1.3 per cent. Renminbi deposits in Hong Kong decreased by 2.8 per cent in February to RMB813.5 billion at the end of February. The total remittance of renminbi for cross-border trade settlement amounted to RMB747.7 billion in February, compared with RMB615.2 billion in January. 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 0.6 per cent in February, while increased by 0.6 per cent in the first two months of 2023. Among the total, loans for use in Hong Kong (including trade finance) and loans for use outside Hong Kong decreased by 0.5 per cent and 0.9 per cent respectively in February. The Hong Kong dollar loan-to-deposit ratio increased to 88.4 per cent at the end of February from 86.8 per cent at the end of January, as Hong Kong dollar deposits decreased while Hong Kong dollar loans increased.

     Hong Kong dollar M2 and M3 both decreased by 1.2 per cent in February and both edged up by 0.1 per cent when compared to a year ago. The seasonally-adjusted Hong Kong dollar M1 decreased by 2.6 per cent in February and decreased by 20.1 per cent compared to a year ago, reflecting in part investment-related activities. Total M2 and total M3 both decreased by 1.7 per cent in February. Compared to a year earlier, total M2 and total M3 both remained virtually unchanged. 

     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, March 31, 2023
Issued at HKT 17:00