The Hong Kong Monetary Authority published monetary statistics for August 2025 showing total deposits with authorized institutions rose by 0.9% over the month, while total loans and advances fell by 0.4%. The Hong Kong dollar loan-to-deposit ratio increased to 74.6% at end-August from 73.1% at end-July as Hong Kong dollar deposits contracted faster than Hong Kong dollar loans. Within deposits, Hong Kong dollar deposits declined by 2.1% and foreign currency deposits increased by 3.3%, mainly reflecting corporate fund flows. Over the year to end-August, total deposits and Hong Kong dollar deposits increased by 8.7% and 2.6% respectively. Renminbi deposits in Hong Kong rose 3.2% in August to RMB968.0 billion, while renminbi cross-border trade settlement remittances totalled RMB996.9 billion, down from RMB1,233.3 billion in July. On lending, loans for use in Hong Kong (including trade finance) edged down 0.1% in August and loans for use outside Hong Kong decreased 1.3%, with total loans and advances up 1.0% over the year to end-August. Hong Kong dollar M2 and M3 both decreased 1.9% in August and were 4.0% higher year on year, while seasonally adjusted Hong Kong dollar M1 fell 2.9% in August but rose 16.1% year on year; total M2 and total M3 increased 0.7% over the month and 10.4% from a year earlier. The HKMA cautioned that monthly monetary statistics can be volatile due to factors including interest rate movements, fund-raising activities, seasonal funding demand, and business and investment-related activity.

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