Hong Kong Monetary Authority: In July, the M2 and M3 money supply of the Hong Kong dollar increased by 5.6% and 5.5% year-on-year, respectively.

The statistics released by the Hong Kong Monetary Authority today (August 31) indicate that the M2 and M3 money supplies in Hong Kong dollar rose by 1.0% in July, representing increases of 5.6% and 5.5% compared to the same period last year, respectively. The seasonally adjusted M1 money supply in Hong Kong dollar decreased by 0.5% in July, down 0.6% compared to the same period last year, partially reflecting investment-related activities. The total money supply M2 and M3 both increased by 1.1% in July, with year-on-year increases of 10.2% for both M2 and M3. Total deposits from recognized institutions rose by 0.9% in July 2026, with both Hong Kong dollar and foreign currency deposits also increasing by 0.9%. From the beginning of the year up to the end of July, total deposits and Hong Kong dollar deposits increased by 5.8% and 6.2%, respectively. Renminbi deposits in Hong Kong rose by 2.9% in July, amounting to 1.1254 trillion yuan by the end of July. The total amount of Renminbi remittances for cross-border trade settlement in July was 1.3837 trillion yuan, compared to 1.2777 trillion yuan in June. Changes in deposits are influenced by multiple factors, including interest rate trends and market fundraising activities, so it is appropriate to observe longer-term trends without overinterpreting fluctuations in individual months. The total amount of loans and advances rose by 0.2% in July, with an increase of 6.6% from the beginning of the year to the end of July. Among these, the loans used in Hong Kong (including trade financing) decreased by 0.3% in July, while loans used outside of Hong Kong increased by 1.7%. Due to the increase in Hong Kong dollar deposits and the decrease in Hong Kong dollar loans, the loan-to-deposit ratio for Hong Kong dollar fell from 71.5% at the end of June to 70.7% at the end of July.