Rebeca Moen
Jun 30, 2025 08:12
The Hong Kong Monetary Authority revealed a 2.5% increase in total deposits for May 2025, with notable growth in Hong Kong dollar and foreign currency deposits.
The Hong Kong Monetary Authority (HKMA) has published its monetary statistics for May 2025, highlighting a notable increase in total deposits with authorized institutions. According to the report, total deposits rose by 2.5% during the month, driven by significant fund flows from corporates.
Deposit Growth Detailed
Among the total deposits, Hong Kong dollar deposits surged by 3.4%, while foreign currency deposits increased by 1.8% in May. This growth reflects a broader trend observed throughout the year, with total deposits and Hong Kong dollar deposits increasing by 6.7% and 7.9% respectively by the end of May.
Renminbi Deposits and Trade Settlement
Conversely, renminbi deposits in Hong Kong experienced a decline of 5.4%, totaling RMB975.6 billion by the end of May. This decrease is attributed to corporate fund flows. The total remittance of renminbi for cross-border trade settlement amounted to RMB1,123.6 billion in May, down from RMB1,362.1 billion in April.
Loans and Advances
Total loans and advances saw a modest increase of 0.9% in May, with a year-to-date growth of 1.4%. Loans for use in Hong Kong, including trade finance, and loans for use outside Hong Kong rose by 0.9% and 1.1% respectively. The Hong Kong dollar loan-to-deposit ratio decreased to 70.5% by the end of May from 72.3% in April, as deposits grew faster than loans.
Monetary Aggregates
The report also indicated an increase in the Hong Kong dollar M2 and M3 monetary aggregates, both rising by 3.2% in May, and by 9.5% compared to the previous year. The seasonally-adjusted Hong Kong dollar M1 grew by 12.3% in May and 18.5% year-on-year, partially driven by investment-related activities. Total M2 and M3 saw a 2.5% increase in May and a 10.7% growth year-on-year.
While these figures provide a snapshot of the financial landscape, the HKMA cautions that monthly statistics can be influenced by various transient factors, including seasonal funding demands and investment activities, necessitating careful interpretation of the data.
For more details, the full report by the Hong Kong Monetary Authority can be accessed here.
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