Hong Kong Monetary Authority: In March, the Hong Kong dollar money supply M2 and M3 both increased by 7.7% year-on-year.

On April 30, the Hong Kong Monetary Authority released the monetary statistics for March 2025. In March, the Hong Kong dollar money supply M2 and M3 both increased by 1.5%, compared to the same period last year, they both increased by 7.7%. Seasonally adjusted Hong Kong dollar money supply M1 in March increased by 0.8%, compared to the same period last year, it increased by 7.0%, partially reflecting investment-related activities. The total amount of money supply M2 and M3 both increased by 0.7% in March, compared to the same period last year, M2 and M3 both increased by 10.8%. The statistics show that the total deposits of recognized institutions increased by 0.8% in March 2025, with Hong Kong dollar deposits and foreign currency deposits increasing by 1.6% and 0.1% respectively. In the first quarter of 2025, the total deposits and Hong Kong dollar deposits increased by 3.5% and 5.1% respectively. RMB deposits in Hong Kong fell by 7.3% in March, reaching 958 billion yuan by the end of March, mainly reflecting corporate fund flows. The total amount of RMB settlements for cross-border trade in March was 1.184 trillion yuan, compared to 1.064 trillion yuan in February. Deposit changes are influenced by various factors, including interest rate trends, market fundraising activities, etc., so it is appropriate to observe longer-term trends without overinterpreting the fluctuations in individual months. Total loans and advances increased by 1.1% in March, and by 0.6% in the first quarter of 2025. Loans used in Hong Kong (including trade financing) and loans used outside Hong Kong increased by 1.2% and 0.8% respectively in March. Due to the increase in Hong Kong dollar deposits and the decrease in Hong Kong dollar loans, the Hong Kong dollar loan-to-deposit ratio decreased from 73.5% at the end of February to 72.3% at the end of March. Loans used in Hong Kong (including trade financing) increased by 0.5% in the first quarter of 2025, following a 0.1% decrease in the previous quarter. Analysis by economic purpose shows an increase in loans to financial companies, while loans to the construction industry, property development, and investment decreased.