HKMA: In September, Hong Kong dollar M2 and M3 both fell 0.8%

On 30 October, statistics published by the Hong Kong Monetary Authority showed that in September, Hong Kong dollar M2 and M3 both fell 0.8%, and both rose 7.5% compared with the same period last year. In September, seasonally adjusted Hong Kong dollar M1 fell 0.6%, and rose 4.4% compared with the same period last year, partly reflecting investment-related activities. Total money supply M2 and M3 both rose 0.4% in September, and compared with the same period last year, M2 and M3 rose 10.1% and 10.0% respectively. Total deposits with authorized institutions rose 0.4% in September 2026, of which Hong Kong dollar deposits fell 1.1% while foreign currency deposits rose 1.6%, mainly reflecting corporate fund flows. From the beginning of the year to the end of September, total deposits and Hong Kong dollar deposits rose 7.7% and 7.3% respectively. Renminbi deposits in Hong Kong rose 2.6% in September, to RMB1.1299 trillion at the end of September. The total amount of renminbi remittances for cross-border trade settlement was RMB1.2896 trillion in September, compared with RMB1.1038 trillion in August. Total loans and advances rose 0.7% in September, and rose 7.7% from the beginning of the year to the end of September. Of this, loans for use in Hong Kong (including trade finance) and loans for use outside Hong Kong rose 0.7% and 0.6% respectively in September. As Hong Kong dollar loans rose while Hong Kong dollar deposits fell, the Hong Kong dollar loan-to-deposit ratio rose from 69.3% at the end of August to 70.3% at the end of September. Loans for use in Hong Kong (including trade finance), after rising 3.0% in the previous quarter, rose 0.8% quarter-on-quarter in the third quarter of 2026. Analysed by economic use, trade finance rose, while loans for building and construction and for property development and investment fell.