Hong Kong’s January 2025 Monetary Statistics Show Positive Trends

In January 2025, the Hong Kong Financial Authority (HKMA) reported a notable enhance in whole deposits with approved establishments, which rose by 1.4%. This development displays an uptick in each Hong Kong greenback deposits and international forex deposits, which elevated by 1.3% and 1.5% respectively, in keeping with the HKMA. A major surge was noticed in renminbi deposits, which climbed by 6.5% to succeed in RMB986.8 billion by the top of January, primarily on account of company fund flows.

Deposit and Mortgage Dynamics

The entire remittance of renminbi for cross-border commerce settlement was RMB1,377.4 billion in January, barely down from RMB1,401.6 billion in December. The HKMA emphasizes that deposit modifications may be influenced by numerous components corresponding to rate of interest actions and fundraising actions, advising that longer-term traits present extra correct insights than month-to-month fluctuations.

Conversely, whole loans and advances noticed a slight lower of 0.2% in January. Loans to be used in Hong Kong, together with commerce finance, dropped by 0.5%, whereas loans to be used outdoors Hong Kong skilled a 0.6% enhance. The Hong Kong greenback loan-to-deposit ratio additionally decreased to 75.7% from 77.1% on the finish of December, attributed to a rise in Hong Kong greenback deposits alongside a lower in loans.

Financial Aggregates

Each the Hong Kong greenback M2 and M3 financial aggregates rose by 1.5% in January and by 4.5% in comparison with the earlier yr. In the meantime, the seasonally adjusted Hong Kong greenback M1 noticed a lower of three.0% in January however elevated by 1.8% year-on-year, partly reflecting investment-related actions. Whole M2 and M3 additionally skilled a 1.6% enhance in January and a sturdy 9.6% development in comparison with the identical interval final yr.

The HKMA cautions that month-to-month financial statistics may be unstable on account of transient components corresponding to seasonal and IPO-related funding calls for, in addition to enterprise and funding actions. Due to this fact, cautious interpretation of those statistics is really useful.

For complete particulars, check with the official launch by the Hong Kong Financial Authority.

Picture supply: Shutterstock