Hong Kong Monetary Authority: The supply of Hong Kong dollars in January, as measured by M2 and M3, both decreased by 0.2%.

On February 29th, according to statistics released by the Hong Kong Monetary Authority, the total deposits of authorized institutions dropped by 0.6% in January 2024, with Hong Kong dollar deposits and foreign currency deposits decreasing by 0.3% and 0.8% respectively, mainly reflecting the flow of corporate funds. Renminbi deposits in Hong Kong increased by 1.7% in January, reaching 954.7 billion yuan by the end of the month. The total amount of Renminbi remittances for cross-border trade settlement was 1.4 trillion yuan in January, compared to 1.27 trillion yuan in December. Changes in deposits are influenced by multiple factors, including interest rate trends and market fundraising activities, so it is advisable to observe longer-term trends without overinterpreting fluctuations in individual months. Total loans and advances fell by 0.8% in January. Loans used in Hong Kong (including trade financing) decreased by 1.1%, while loans used outside of Hong Kong showed no significant change. Due to the simultaneous decline in Hong Kong dollar loans and deposits, the Hong Kong dollar loan-to-deposit ratio remained roughly unchanged at 84.2% by the end of January. In January, the Hong Kong dollar money supply M2 and M3 both decreased by 0.2%, representing a 0.7% decline compared to the same period last year. The seasonally adjusted Hong Kong dollar money supply M1 fell by 4.6% in January, a 13.8% drop compared to the same period last year, reflecting some investment-related activities. The total money supply M2 and M3 both decreased by 0.5% in January, with a 2.1% increase compared to the same period last year.