HKMA:Monetary Statistics for February 2023
According to statistics published by the Hong Kong Monetary Authority, total deposits with authorized institutions decreased by 1.6% in February 2023 after increasing by 1.3% in January. Among the total, Hong Kong dollar deposits and foreign currency deposits decreased by 1.1% and 2.1% respectively in February, mainly reflecting fund flows of corporates. In the first two months of 2023, total deposits decreased by 0.3% while Hong Kong dollar deposits increased by 1.3%. Renminbi deposits in Hong Kong decreased by 2.8% in February to RMB 813.5 billion at the end of February. The total remittance of renminbi for cross-border trade settlement amounted to RMB 747.7 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% in February, while increased by 0.6% 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% and 0.9% respectively in February. The Hong Kong dollar loan-to-deposit ratio increased to 88.4% at the end of February from 86.8% 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% in February and both edged up by 0.1% when compared to a year ago. The seasonally-adjusted Hong Kong dollar M1 decreased by 2.6% in February and decreased by 20.1% compared to a year ago, reflecting in part investment-related activities. Total M2 and total M3 both decreased by 1.7% 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.
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