Hong Kong Monetary Authority: The Hong Kong dollar money supply M2 and M3 both increased by 4.2% year-on-year in December 2025.

The statistics released by the Hong Kong Monetary Authority today (January 30) show that in December 2025, the Hong Kong dollar currency supply M2 and M3 both increased by 0.4% compared to the same period last year. Seasonally adjusted Hong Kong dollar currency supply M1 decreased by 2.0% in December, but increased by 11.7% compared to the same period last year, partly reflecting investment-related activities. The total amount of currency supply M2 and M3 both increased by 1.2% in December compared to the same period last year, with M2 and M3 both rising by 11.6%. The total amount of recognized institution deposits increased by 1.2% in December 2025, with Hong Kong dollar deposits and foreign currency deposits increasing by 0.4% and 1.7% respectively. For the entire year of 2025, total deposits and Hong Kong dollar deposits increased by 11.8% and 3.8% respectively. Renminbi deposits in Hong Kong decreased by 4.2% in December, totaling 960.1 billion RMB by the end of December, mainly reflecting the flow of corporate funds. The total amount of Renminbi remittances for cross-border trade settlement was 1.1774 trillion RMB in December, compared to 1.033 trillion RMB in November. Changes in deposits are influenced by various factors such as interest rate trends and market fundraising activities, so it is appropriate to observe longer-term trends without overinterpreting fluctuations in individual months. The total amount of loans and advances increased by 1.3% in December, and by 2.3% for the entire year of 2025. Loans used in Hong Kong (including trade finance) and loans used outside of Hong Kong both increased by 1.2% and 1.8% respectively in December. Due to the larger increase in Hong Kong dollar deposits compared to Hong Kong dollar loans, the Hong Kong dollar loan-to-deposit ratio decreased from 73.2% at the end of November to 72.9% at the end of December. Loans used in Hong Kong (including trade finance) increased by 0.2% in the fourth quarter of 2025, following a decrease of 0.4% in the previous quarter. Residential mortgage loans increased, while loans for construction, property development, and investment decreased. As monthly monetary statistics may be affected by various short-term factors (such as seasonal funding needs, and commercial and investment-related activities), caution should be exercised in interpreting the statistics.