Hong Kong Deposits Show Growth in May 2024 ๐
As per the latest data from the Hong Kong Monetary Authority (HKMA), total deposits held with authorized institutions in Hong Kong experienced a 1.1% increase in May 2024. The report, released on June 28, reveals that Hong Kong dollar deposits went up by 0.3%, while foreign currency deposits saw a rise of 1.8%.
Deposit Growth and Renminbi Trends ๐ฆ
By the end of May, total deposits had climbed by 3.2% year-to-date, with Hong Kong dollar deposits showing a 0.9% increase. Notably, renminbi deposits in Hong Kong surged by 4.2%, reaching RMB1,134.0 billion. This growth is mainly attributed to corporate fund inflows. However, the total remittance of renminbi for cross-border trade settlement decreased to RMB1,183.2 billion in May from RMB1,257.0 billion in April.
- Deposit changes influenced by factors like interest rate movements and fundraising activities
- Longer-term trends should be observed for accurate analysis
Loans and Advances ๐ธ
Despite the increase in deposits, total loans and advances declined by 0.4% in May and by 2.4% year-on-year until the end of May. Loans for use in Hong Kong, including trade finance, dropped by 0.3%, while loans for use outside Hong Kong decreased by 0.7%. As a result, the Hong Kong dollar loan-to-deposit ratio decreased to 81.4% at the end of May from 82.1% at the end of April.
Monetary Aggregates ๐ฐ
In May, both Hong Kong dollar M2 and M3 saw a 0.4% increase, with a 1.5% rise compared to the same period last year. On the other hand, seasonally adjusted Hong Kong dollar M1 decreased by 0.1% in May and by 8.4% year-on-year, partly due to investment-related activities. Total M2 and M3 recorded a 1.2% increase in May and a 7.8% rise year-on-year.
- Monthly monetary statistics can be volatile due to transient factors like seasonal demands
- Careful interpretation required for analyzing these statistics effectively
For further details, you can access the complete report on the Hong Kong Monetary Authority website.
Image source: Shutterstock
Hot Take ๐ฅ
Keep an eye on the evolving trends in deposits, loans, and monetary aggregates in Hong Kong for a comprehensive understanding of the financial landscape in the region. Understanding the factors that influence these numbers can provide valuable insights into the economic health and stability of Hong Kong’s financial sector.
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