On Mon, 31 Aug, the Hong Kong Monetary Authority released monetary statistics for July 2026 showing total deposits rose by 0.9%, loans and advances increased by 0.2%, renminbi deposits reached RMB1,125.4 billion, and money supply aggregates ("M2/M3") grew modestly month-on-month while remaining solid year-on-year.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Publication of Monetary Statistics for July 2026
On Mon, 31 Aug, the Hong Kong Monetary Authority (the "Authority") issued a press release dated 31 August 2026, publishing monetary statistics for July 2026. The report encompassed key financial indicators including deposits, loans and advances, renminbi-related data, and money supply aggregates.
Deposits with Authorized Institutions
Total deposits with authorized institutions recorded a month-on-month increase of 0.9% in July 2026, with both Hong Kong dollar deposits and foreign currency deposits rising by the same margin during that period. On an annual basis for the year to end-July, total deposits grew by 5.8%, while Hong Kong dollar deposits increased by 6.2%. Renminbi denominated deposits in Hong Kong expanded by 2.9% in July, reaching RMB1,125.4 billion at month-end.
Renminbi Cross-Border Trade Settlements
The total remittance of renminbi for cross-border trade settlement amounted to RMB1,383.7 billion in July 2026, representing an increase from the RMB1,277.7 billion recorded in June.
Loans and Advances; Loan-to-Deposit Ratio
Total loans and advances increased by 0.2% month-on-month in July, with a year-to-end-July growth of 6.6%. Within this aggregate, loans for use in Hong Kong (including trade finance) declined by 0.3%, whereas loans for use outside Hong Kong rose by 1.7% during the period under review. The Hong Kong dollar loan-to-deposit ratio decreased to 70.7% at end-July from 71.5% at end-June, attributable to a concurrent increase in Hong Kong dollar deposits and decrease in Hong Kong dollar loans.
Money Supply Aggregates
Hong Kong dollar M2 and M3 each rose by 1.0% in July, with year-on-year growth of 5.6% and 5.5%, respectively. The seasonally-adjusted Hong Kong dollar M1 declined by 0.5% month-on-month and fell by 0.6% on a year-over-year basis, reflecting in part investment-related activities. Total M2 and total M3 both increased by 1.1% in July; compared to the corresponding period one year earlier, both aggregates grew by 10.2%.
Caveats Regarding Volatility
The Authority noted that changes in deposits are influenced by a broad range of factors, including interest rate movements and fund-raising activities, and accordingly advised that longer-term trends should be observed rather than over-generalizing fluctuations attributable to any single month. Furthermore, the Authority cautioned that monthly monetary statistics remain subject to volatility arising from transient factors such as seasonal funding demand and business or investment-related activities.
Hong Kong Monetary Authority
31 August 2026
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