Total deposits with authorized institutions in Hong Kong increased by 0.9% in June 2025, with Hong Kong dollar deposits decreasing by 0.9% and foreign currency deposits increasing by 2.4%. Total loans and advances increased by 1.1%, and M2 and M3 both decreased by 0.8%. Monetary statistics for June reflect various fund flows and business activities.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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The Hong Kong Monetary Authority ("HKMA") reported a 0.9% rise in total deposits at authorized institutions in June 2025. This increase was driven by a 2.4% growth in foreign currency deposits, with corporate funding flows being a significant factor. In contrast, Hong Kong dollar deposits declined by 0.9% for the month. For the first half of 2025, total and Hong Kong dollar deposits increased by 7.6% and 7.0%, respectively. Meanwhile, Renminbi deposits in Hong Kong decreased by 9.6% in June, totaling RMB882.1 billion, largely due to corporate funding activities. The total remittance of Renminbi for cross-border trade settlement reached RMB1,223.5 billion in June, a 9% increase from the previous month (RMB1,123.6 billion). It is crucial to observe longer-term trends rather than attributing too much significance to monthly fluctuations.
Total loans and advances increased by 1.1% in June 2025 and by 2.5% over the first half of 2025. Among these, loans for use in Hong Kong, including trade finance, and loans for use outside Hong Kong increased by 0.9% and 1.8%, respectively. The Hong Kong dollar loan-to-deposit ratio rose to 72.0% in June from 70.5% in May, reflecting a decrease in Hong Kong dollar deposits while loans in this currency rose. In the second quarter of 2025, loans for use in Hong Kong (including trade finance) increased by 1.6%, with financial concerns and electricity and gas sectors being key drivers of this growth.
Hong Kong dollar M2 and M3 both decreased by 0.8% in June 2025, yet each increased by 8.4% year-over-year. The seasonally-adjusted Hong Kong dollar M1 rose by 4.4% in June and by 23.7% compared to a year ago, suggesting investment-related activities. Total M2 and M3 both increased by 0.8% in June, and compared to a year earlier, both increased by 11.5%.
Given the volatility in monthly monetary statistics, attributed to factors such as seasonal funding demand and business/investment-related activities, caution is advised when interpreting these figures.
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