Monetary statistics for January 2022
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According to statistics published today (February 28) by the Hong Kong Monetary Authority, total deposits with authorized institutions increased by 2.6 per cent in January 2022. Among the total, Hong Kong dollar deposits and foreign currency deposits grew by 1.3 per cent and 3.8 per cent respectively. Renminbi deposits in Hong Kong increased by 18.2 per cent, amounting to RMB1,095.9 billion at the end of January, largely driven by inflows from corporations. The total remittance of renminbi for cross-border trade settlement amounted to RMB699.4 billion in January, compared with RMB708.5 billion in December 2021.
Total loans and advances increased by 0.8 per cent in January. Among the total, loans for use in Hong Kong (including trade finance) and loans for use outside Hong Kong increased by 0.6 per cent and 1.2 per cent respectively. The Hong Kong dollar loan-to-deposit ratio decreased to 85.7 per cent at the end of January from 86.7 per cent at the end of December 2021, as Hong Kong dollar deposits increased at a faster pace than Hong Kong dollar loans.
Hong Kong dollar M2 and M3 both grew by 1.4 per cent in January, but both decreased by 12.2 per cent compared to a year ago. Large-scale IPO activities at the end of January 2021 led to an increase in deposits that resulted in 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 January both decreased by 2.0 per cent compared to a year ago. The seasonally-adjusted Hong Kong dollar M1 rose by 1.7 per cent in January, and increased by 1.2 per cent compared to a year ago, reflecting in part investment-related activities. Total M2 and M3 both rose by 2.5 per cent in January, but both decreased by 2.0 per cent from a year earlier. Excluding the deposits created by the IPO-related loans, total M2 and M3 both picked up by 3.9 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/Monday, February 28, 2022
Issued at HKT 16:30
Issued at HKT 16:30
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