James Ding
Nov 28, 2025 09:07
The Hong Kong Monetary Authority reported a 0.4% decrease in total deposits and a 0.7% decline in loans for October 2025, highlighting fluctuating monetary trends.
Monetary Trends in October 2025
According to the Hong Kong Monetary Authority (HKMA), total deposits within authorized institutions experienced a 0.4% decrease in October 2025. This decline reflects a broader shift in monetary trends as both Hong Kong dollar deposits and foreign currency deposits fell by 0.9% and 0.1% respectively, primarily driven by corporate fund flows. Despite these short-term fluctuations, the year-to-date figures show a 9.7% increase in total deposits and a 3.1% rise in Hong Kong dollar deposits.
Renminbi Deposits and Cross-Border Trade
Renminbi deposits in Hong Kong also saw a reduction of 0.6%, amounting to RMB996.2 billion by the end of October. Cross-border trade settlement in renminbi totaled RMB1,006.6 billion, a decrease from September’s RMB1,123.2 billion. The HKMA emphasizes that monthly changes in deposits are influenced by a variety of factors, including interest rate movements and corporate fund-raising activities, suggesting that long-term trends provide a more accurate picture of monetary stability.
Loan and Monetary Supply Dynamics
Total loans and advances decreased by 0.7% during October, although they grew by 0.9% over the year up to October. Loans for domestic use, including trade finance, and those for overseas use fell by 0.9% and 0.2% respectively. The loan-to-deposit ratio for the Hong Kong dollar remained steady at 73.6%, as both loans and deposits decreased at a similar pace.
Monetary Aggregates
The HKMA reported that both Hong Kong dollar M2 and M3 monetary aggregates decreased by 0.6% in October but increased by 3.5% compared to the previous year. The seasonally-adjusted Hong Kong dollar M1 saw a 1.7% increase in October and a 12.2% rise over the past year, partly due to investment-related activities. Meanwhile, total M2 and M3 fell by 0.3% in October, yet both aggregates increased by 10.6% year-on-year.
Conclusion
The HKMA advises caution in interpreting these statistics due to potential volatilities from transient factors, such as seasonal funding demands and business activities. For comprehensive details, the HKMA provides an official report on their website.
Image source: Shutterstock
