In July 2025, Hong Kong Monetary Authority reported a 0.2% increase in total deposits, with Hong Kong dollar deposits decreasing by 2.0% and foreign currency deposits increasing by 1.9%. Renminbi deposits increased by 6.4% in July. Total loans decreased by 1.1% in July but increased by 1.3% in the year to July. Hong Kong dollar M2 and M3 decreased by 1.8% in July, while M1 decreased by 2.3%. The report noted that fluctuations are influenced by a range of factors and advised caution in interpreting the monthly statistics.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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According to the Hong Kong Monetary Authority, total deposits with authorized institutions increased by 0.2% in July 2025. Among these, Hong Kong dollar deposits decreased by 2.0%, while foreign currency deposits increased by 1.9%. Over the year to end-July, total deposits and Hong Kong dollar deposits rose by 7.8% and 4.9%, respectively. Renminbi deposits in Hong Kong increased by 6.4% in July, reaching RMB938.2 billion, reflecting fund flows from corporates. The total remittance of renminbi for cross-border trade settlement reached RMB1,244.3 billion in July, up from RMB1,223.5 billion in June.
The report highlights that changes in deposits are influenced by various factors such as interest rate movements and fund-raising activities. Therefore, it is advised to observe long-term trends rather than over-generalizing fluctuations in a single month. Total loans and advances decreased by 1.1% in July but rose by 1.3% in the year to July. Loans for use in Hong Kong (including trade finance) and loans for use outside Hong Kong decreased by 1.0% and 1.7%, respectively, in July. The Hong Kong dollar loan-to-deposit ratio increased to 73.1% in July from 72.0% in June, as Hong Kong dollar deposits decreased faster than loans.
Hong Kong dollar M2 and M3 both decreased by 1.8% in July, while total M2 and total M3 increased by 0.1% in July compared to the previous month. Compared to a year earlier, both Hong Kong dollar M2 and M3 increased by 6.2%, whereas the seasonally-adjusted Hong Kong dollar M1 decreased by 2.3% in July but increased by 18.5% compared to a year ago. Total M2 and total M3 increased by 10.8% compared to the same period last year. Monthly monetary statistics are subject to volatility due to various transient factors, so caution is advised when interpreting these figures.
The report was published on 29 August 2025 by the Hong Kong Monetary Authority.
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