Hong Kong Monetary Authority Reports August 2025 Monetary Statistics

Darius Baruo Sep 30, 2025 09:21

The Hong Kong Monetary Authority reported a 0.9% increase in total deposits in August 2025, with fluctuations in Hong Kong dollar and foreign currency deposits.

In a recent report by the Hong Kong Monetary Authority (HKMA), the total deposits with authorized institutions in Hong Kong saw a 0.9% rise in August 2025. This growth is attributed largely to the dynamics of corporate fund flows, as stated by the HKMA. The monthly statistics were released on September 30, 2025, indicating a complex financial landscape influenced by various factors.

Deposit Trends and Currency Movements

Despite the overall increase in total deposits, Hong Kong dollar deposits experienced a decline of 2.1%, whereas foreign currency deposits rose by 3.3% during the same period. This shift highlights the significant influence of corporate fund movements on the monetary environment. Over the year leading to end-August, total deposits and Hong Kong dollar deposits grew by 8.7% and 2.6%, respectively.

Renminbi deposits also saw a notable increase of 3.2%, reaching RMB 968.0 billion by the end of August. However, the total remittance of renminbi for cross-border trade settlement fell to RMB 996.9 billion, down from RMB 1,233.3 billion in July. These changes underscore the complexity of interpreting monthly data, which can be affected by interest rate shifts and fundraising activities.

Loans and Advances: A Mixed Picture

The report also detailed a 0.4% decline in total loans and advances in August, although there was a 1.0% increase over the year to end-August. Loans for use within Hong Kong, including trade finance, decreased by 0.1%, while loans for use outside Hong Kong experienced a 1.3% decline. Consequently, the Hong Kong dollar loan-to-deposit ratio climbed to 74.6% from 73.1% in July, due to the faster decrease in Hong Kong dollar deposits compared to loans.

Monetary Aggregates and Market Volatility

Hong Kong dollar M2 and M3 both saw a decrease of 1.9% in August, yet increased by 4.0% when compared year-on-year. Additionally, the seasonally-adjusted Hong Kong dollar M1 decreased by 2.9% in August but showed a robust 16.1% year-on-year increase, partly driven by investment-related activities. Total M2 and M3 increased by 0.7% in August, marking a year-on-year rise of 10.4%.

Given the potential for volatility in monthly monetary statistics due to transient factors such as seasonal funding demand and business activities, the HKMA advises caution in interpreting these figures. These fluctuations emphasize the importance of focusing on longer-term trends rather than over-emphasizing monthly changes.

For more detailed insights, the original report is available on the Hong Kong Monetary Authority website.

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