Monetary Statistics for June 2026

Monetary Authority Deposit Statistics

On Fri, 31 Jul, the Hong Kong Monetary Authority reported that total deposits with authorized institutions increased by 0.1% in June 2026. Specifically, Hong Kong dollar deposits rose 0.9%, while foreign currency deposits declined 0.5%. For the first half of 2026, total deposits and Hong Kong dollar deposits grew 4.9% and 5.3%, respectively. Renminbi deposits fell 3.6% to RMB1,093.5 billion at end-June. Cross-border trade settlement remittances reached RMB1,277.7 billion in June, compared with RMB1,129.6 billion in May. Stakeholders should note that deposit fluctuations stem from various factors, including interest rate movements and fundraising activities; thus, longer-term trends are more indicative than single-month variations.

Loans and Advances Analysis

Total loans and advances expanded 1.3% in June, marking a 6.4% increase for the first half of 2026. In June, loans for use in Hong Kong, including trade finance, grew 1.4%, while loans for use outside Hong Kong rose 1.0%. Consequently, the Hong Kong dollar loan-to-deposit ratio climbed to 71.5% at end-June from 71.0% in May, driven by loan growth outpacing deposit growth. During the second quarter of 2026, loans for use in Hong Kong increased 3.0%, continuing the trend from the preceding quarter. Economic use analysis indicates that second-quarter loan growth was primarily driven by financial concerns and the manufacturing sector.

Monetary Aggregates Overview

Hong Kong dollar M2 and M3 both rose 0.8% in June, reflecting a 2.6% year-on-year increase. Conversely, seasonally-adjusted Hong Kong dollar M1 declined 1.0% in June and 3.0% year-on-year, partly attributable to investment-related activities. Total M2 and total M3 increased 0.1% in June, with year-on-year growth of 9.2%. Given that monthly monetary statistics are subject to volatility from transient factors, including seasonal funding demand and business activities, caution is warranted when interpreting these figures.