Hong Kong’s January 2025 Financial Statistics Present Constructive Tendencies

In January 2025, the Hong Kong Financial Authority (HKMA) reported a notable enhance in whole deposits with licensed establishments, which rose by 1.4%. This progress displays an uptick in each Hong Kong greenback deposits and overseas foreign money deposits, which elevated by 1.3% and 1.5% respectively, based on the HKMA. A major surge was noticed in renminbi deposits, which climbed by 6.5% to achieve RMB986.8 billion by the tip of January, primarily as a consequence of company fund flows.

Deposit and Mortgage Dynamics

The whole 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 adjustments could be influenced by numerous elements corresponding to rate of interest actions and fundraising actions, advising that longer-term developments 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. Complete M2 and M3 additionally skilled a 1.6% enhance in January and a sturdy 9.6% progress in comparison with the identical interval final yr.

The HKMA cautions that month-to-month financial statistics could be unstable as a consequence of transient elements corresponding to seasonal and IPO-related funding calls for, in addition to enterprise and funding actions. Subsequently, cautious interpretation of those statistics is beneficial.

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

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