Monetary Statistics for May 2026

On Tue, 30 Jun, the Hong Kong Monetary Authority disclosed Monetary Statistics for May 2026. Total deposits with authorized institutions rose by 2.3% in May 2026, with Hong Kong dollar and foreign currency deposits increasing by 1.2% and 3.2% respectively, primarily reflecting corporate fund flows. Year-to-end-May, total and Hong Kong dollar deposits grew by 4.8% and 4.4%. Renminbi deposits rose 5.3% to RMB1,134.7 billion, also driven by corporate flows. Cross-border trade settlement remittances totalled RMB1,129.6 billion in May against RMB1,214.6 billion in April. Deposit changes are influenced by interest rates and fundraising; stakeholders should prioritize long-term trends over single-month fluctuations.

Lending Activity and Loan-to-Deposit Ratios

Total loans and advances increased by 1.4% in May and 5.0% year-to-end-May. Loans for use in Hong Kong (including trade finance) and loans for use outside Hong Kong both rose by 1.4% in May. The Hong Kong dollar loan-to-deposit ratio fell to 71.0% at the end of May from 71.6% in April, as Hong Kong dollar deposits outpaced loan growth.

Monetary Supply Indicators

Hong Kong dollar M2 and M3 increased by 1.1% in May, with year-on-year growth of 1.1% and 1.0%. Seasonally-adjusted Hong Kong dollar M1 decreased by 0.6% in May but increased by 2.0% year-on-year, reflecting investment-related activities. Total M2 and M3 rose by 2.4% in May, up 9.9% and 9.8% respectively year-on-year.

Regulatory Disclaimer

Stakeholders are reminded that monthly monetary statistics are subject to volatility due to transient factors, including seasonal funding demand, business and investment-related activities, interest rate movements, and fund-raising activities. Caution is required when interpreting the statistics.