Monetary Statistics for January 2026

On February 27, the Hong Kong Monetary Authority released monetary statistics for January 2026. The data indicated a decline in total deposits with authorized institutions by 0.1%, with a notable increase in Hong Kong dollar deposits by 1.3% and a decrease in foreign currency deposits by 1.1%, suggesting changes in corporate fund flows. Notably, Renminbi deposits surged by 3.5%, reaching RMB993.9 billion. The total remittance for cross-border trade settlement was RMB1,016.4 billion in January.

The report also highlighted an increase in total loans and advances by 1.1% in January. Loans for use in Hong Kong, including trade finance, increased by 0.7%, while loans for use outside Hong Kong rose by 2.2%. Consequently, the Hong Kong dollar loan-to-deposit ratio declined to 72.3% by the end of January. Hong Kong dollar M2 and M3 both increased by 1.1%, up 3.8% year-over-year.

Seasonally-adjusted Hong Kong dollar M1 surged by 2.6% in January and 16.9% compared to a year ago, underscoring investment-related activities. Total M2 and M3 remained steady in January but showed annual increases of 9.9% and 9.8%, respectively. The authority urged caution when interpreting monthly data, noting that statistics can be volatile due to factors such as seasonal funding demand and investment activities.