Monetary Authority
The Hong Kong Monetary Authority is the government authority responsible for maintaining monetary and banking stability. It maintains currency stability within the framework of the Linked Exchange Rate system, helps maintain Hong Kong's status as an international financial centre, and manages the Exchange Fund.
Total deposits with authorised institutions contracted 2.8% in November, the Monetary Authority said today.
Hong Kong-dollar deposits fell 7.1%, partly reflecting a high base of comparison due to initial public offering activity in the previous month. In contrast, foreign-currency deposits expanded 2.5%.
Driven by an increase in trade-related renminbi receipts by corporate customers, renminbi deposits in Hong Kong rose 28.8% to RMB279.6 billion at the end of November. The total remittance of the renminbi for cross-border trade settlement climbed to RMB93.7 billion in November from RMB68.6 billion in October.
Total loans and advances declined 1.3% in November. Loans for use in Hong Kong contracted 1.8% but loans for use outside Hong Kong rose 0.4%. As Hong Kong-dollar loans decreased at a slower rate than deposits, the Hong Kong-dollar loan-to-deposit ratio rebounded from 73.6% at the end of October to 76.8% at the end of November.
Seasonally adjusted Hong Kong-dollar M1 contracted 4.7% in November but expanded 8.4% year on year. Unadjusted Hong Kong-dollar M3 declined 6.6% during the month but increased 7.1% from a year earlier.
