The Hong Kong Monetary Authority published monetary statistics for March 2025 showing total deposits with authorized institutions rose 0.8% and total loans and advances increased 1.1%. The Hong Kong dollar loan-to-deposit ratio fell to 72.3% at end-March from 73.5% at end-February. Hong Kong dollar deposits increased 1.6% in March while foreign currency deposits rose 0.1%. In the first quarter of 2025, total deposits grew 3.5% and Hong Kong dollar deposits 5.1%. Renminbi deposits in Hong Kong declined 7.3% in March to RMB959.8 billion, mainly reflecting corporate fund flows, while renminbi remittances for cross-border trade settlement rose to RMB1,184.0 billion from RMB1,064.1 billion in February. Loans for use in Hong Kong (including trade finance) increased 1.2% in March and loans for use outside Hong Kong rose 0.8%; for the first quarter, loans for use in Hong Kong increased 0.5%, with loans to financial concerns rising and loans to building, construction, property development and investment falling. Hong Kong dollar M2 and M3 each grew 1.5% in March and were up 7.7% year on year, while seasonally adjusted Hong Kong dollar M1 rose 0.8% in March and 7.0% year on year; total M2 and M3 each increased 0.7% in March and 10.8% year on year. The release cautioned that monthly monetary statistics can be volatile due to transient factors such as seasonal and IPO-related funding demand, interest rate movements, and business and investment-related activities, and should be assessed over longer-term trends.

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