In August 2025, Hong Kong Monetary Authority reported a 0.9% increase in total deposits, with a decrease in Hong Kong dollar deposits by 2.1% and an increase in foreign currency deposits by 3.3%. Renminbi deposits grew by 3.2% and remittance for cross-border trade decreased by 15.6%. Total loans and advances decreased by 0.4%, with Hong Kong dollar loan-to-deposit ratio increasing to 74.6%. Monetary aggregates like M2 and M3 decreased in August but increased year-on-year, with caution advised for monthly volatility.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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The Hong Kong Monetary Authority released its latest monetary statistics for August 2025, revealing a mixed picture of deposit and loan dynamics in the financial sector.
Total deposits with authorized institutions in Hong Kong saw a marginal increase of 0.9%, primarily driven by a 3.3% increase in foreign currency deposits, while Hong Kong dollar deposits decreased by 2.1%.
In the year to August 2025, total deposits grew by 8.7%, and Hong Kong dollar deposits expanded by 2.6%.
The renminbi deposits in Hong Kong rose by 3.2% in August, reaching RMB968.0 billion. Similarly, the total remittance of renminbi for cross-border trade settlement was RMB996.9 billion in August.
Total loans and advances decreased by 0.4% in August but increased by 1.0% year-on-year. Hong Kong dollar loans for use within Hong Kong decreased by 0.1%, while loans for use outside Hong Kong declined by 1.3%.
The Hong Kong dollar loan-to-deposit ratio rose to 74.6% in August, reflecting the faster decrease in Hong Kong dollar deposits compared to Hong Kong dollar loans.
Both Hong Kong dollar M2 and M3 decreased by 1.9% in August, although they both increased by 4.0% when compared to the same period last year.
Seasonally-adjusted Hong Kong dollar M1 decreased by 2.9% in August but increased by 16.1% year-on-year, indicating significant investment-related activities.
Total M2 and M3 both increased by 0.7% in August, with a year-over-year growth of 10.4%.
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