Hong Kong: Monetary Statistics For September 201131 October, 2011, 18:28. Posted by Zarathustra
Tags: Economy, Hong Kong, Hong Kong Monetary Authority, Money Supply
Hong Kong Monetary Authority published the latest sets of monetary statistics for September 2011.
Hong Kong dollar M1 money supply increased by 1.8% in September vs. August on a non-seasonally adjusted basis, while seasonally adjusted M1 fell 1.2% in September vs. August. Hong Kong dollar M2 money supply decreased marginally by 0.1% in September, and Hong Kong dollar M3 also decreased marginally by 0.1%.
On an year-on-year basis, Hong Kong dollar M1 money supply decreased by 6.0% in September 2011 on a non-seasonally adjusted basis (but increased by 5.7% on a seasonally adjusted basis), and Hong Kong dollar M2 money supply decreased by 0.3%. Hong Kong dollar M3 money supply also decreased by 0.4% yoy.
Total deposits decreased by 0.2% in September, with Hong Kong dollar deposits decreased by 0.3%. Foreign currency deposits also fell by 0.1%, but renminbi deposits continued to grow by 2.2% in September.
Total loans increased by 0.9%, and in particular, loans for outside use increased by 3.2%. Loan-to-deposit ratio continued to increase in September, which stood at 86.6% at the end of September, increased from 85.9% of August.
Source: Hong Kong Monetary Authority, Centaline
On the whole, the monetary condition of Hong Kong has become tighter. All M1, M2 and M3 money supply year-on-year change dipped into negative territory for the first time since the recovery from the 2008 financial crisis (non-seasonally adjusted), and that is negative for the real estate market.
With the financial market stabilised somewhat in October, the monetary indicators for October may show some improvements. For the time being, however, the risk towards even tighter monetary condition remains possible, as manifested by increase of fixed deposits rates among banks in Hong Kong as the loan-to-deposit ratio of Hong Kong banking system continues to surge. At the same time, as Hong Kong is among the most exposed markets to EU banks cutback in Asia, we could see more pressure of monetary condition.