Group 1 - The core viewpoint of the news is that the Hong Kong Monetary Authority reported a decline in the money supply in July, with M2 and M3 both down by 1.8% month-on-month, but up by 6.2% year-on-year [1] - The seasonally adjusted M1 money supply decreased by 2.3% in July, while it increased by 18.5% compared to the same month last year, reflecting investment-related activities [1] - Total deposits from recognized institutions rose by 0.2% in July, with Hong Kong dollar deposits down by 2.0% and foreign currency deposits up by 1.9%, indicating corporate fund flows [1] Group 2 - The total amount of loans and advances decreased by 1.1% in July, but increased by 1.3% year-to-date [2] - Loans used in Hong Kong and those used outside Hong Kong fell by 1.0% and 1.7% respectively in July [2] - The loan-to-deposit ratio for Hong Kong dollars increased from 72.0% at the end of June to 73.1% at the end of July, as the decline in Hong Kong dollar deposits was greater than that of loans [2]

Group 1 - The total deposits of authorized institutions in Hong Kong increased by 0.2% in July 2025, with HKD deposits decreasing by 2.0% and foreign currency deposits rising by 1.9%, reflecting corporate fund flows [1] - As of the end of July, RMB deposits in Hong Kong rose by 6.4% to 938.2 billion RMB, primarily due to corporate fund flows [1] - The total amount of cross-border trade settlement in RMB for July was 1,244.3 billion RMB, up from 1,223.5 billion RMB in June [1] Group 2 - The total amount of loans and advances decreased by 1.1% in July, but increased by 1.3% year-to-date as of the end of July [1] - The loan-to-deposit ratio for HKD increased from 72.0% at the end of June to 73.1% at the end of July due to a larger decline in HKD deposits compared to HKD loans [1] - The M2 and M3 money supply in HKD both decreased by 1.8% in July, while year-on-year comparisons showed increases of 6.2% [2] Group 3 - Seasonally adjusted M1 money supply in HKD fell by 2.3% in July, but increased by 18.5% compared to the same month last year, reflecting investment-related activities [2] - The total money supply (M2 and M3) increased by 0.1% in July, with year-on-year increases of 10.8% for both M2 and M3 [2] - Monthly monetary statistics may be influenced by various short-term factors, such as seasonal funding demands and business-related activities, necessitating careful interpretation of the data [2]

Monetary Supply - The broad money supply (M2) increased by 1.1% to 82.48 billion MOP, driven by a 3.2% rise in M1 due to a 4.5% increase in demand deposits, despite a 0.2% decrease in currency in circulation [2] - The composition of M2 by currency shows that the shares of MOP, HKD, RMB, and USD are 32.1%, 46.4%, 6.7%, and 12.8% respectively [2] Deposits - Total deposits in the banking system rose by 2.6% to 139.73 billion MOP, with resident deposits increasing by 1.1% to 80.38 billion MOP and non-resident deposits up by 6.5% to 37.39 billion MOP [3] - The public sector's deposits in the banking system increased by 1.6% to 21.97 billion MOP, with the currency composition being 18.8% MOP, 46.7% HKD, 8.3% RMB, and 24.4% USD [3] Loans - Local private sector loans increased by 2.8% to 51.26 billion MOP, with significant quarterly increases in loans to the "Food and Beverage and Hotel" sector (34.3%) and "Water, Electricity, and Gas Production and Supply" sector (18.6%) [4] - Total loans in the banking system rose by 4.2% to 103.52 billion MOP, with the currency composition being 21.4% MOP, 44.1% HKD, 11.2% RMB, and 20.0% USD [4] Operating Ratios - The loan-to-deposit ratio for local residents increased from 49.3% at the end of May to 50.1% at the end of June 2025, while the overall loan-to-deposit ratio, including non-residents, rose from 73.0% to 74.1% [5] - The non-performing loan ratio decreased to 5.4% [5]

Group 1 - The total deposits of authorized institutions in Hong Kong increased by 0.9% in June 2025, with HKD deposits decreasing by 0.9% and foreign currency deposits rising by 2.4%, reflecting corporate fund flows [1] - In the first half of 2025, total deposits and HKD deposits rose by 7.6% and 7.0% respectively [1] - RMB deposits in Hong Kong fell by 9.6% in June, totaling 882.1 billion RMB, primarily due to corporate fund flows [1] - Cross-border trade settlement RMB remittances totaled 1,223.5 billion RMB in June, up from 1,123.6 billion RMB in May [1] Group 2 - The total amount of loans and advances increased by 1.1% in June 2025, with a 2.5% increase in the first half of the year [1] - Loans used in Hong Kong (including trade finance) and loans used outside Hong Kong rose by 0.9% and 1.8% respectively in June [1] - The loan-to-deposit ratio for HKD increased from 70.5% at the end of May to 72.0% at the end of June due to a decrease in HKD deposits and an increase in HKD loans [1] Group 3 - In June, the HKD money supply M2 and M3 both decreased by 0.8%, but increased by 8.4% compared to the same period last year [2] - Seasonally adjusted HKD money supply M1 rose by 4.4% in June, with a year-on-year increase of 23.7%, partly reflecting investment-related activities [2] - The total money supply M2 and M3 both increased by 0.8% in June, with year-on-year increases of 11.5% for both M2 and M3 [2]

Group 1 - The total deposits of recognized institutions in Hong Kong increased by 0.9% in June 2025, with HKD deposits decreasing by 0.9% and foreign currency deposits rising by 2.4%, reflecting corporate fund flows [1] - In the first half of 2025, total deposits and HKD deposits increased by 7.6% and 7.0% respectively, while RMB deposits fell by 9.6% to 882.1 billion RMB by the end of June [1] - Cross-border trade settlement in RMB totaled 1,223.5 billion RMB in June, up from 1,123.6 billion RMB in May [1] Group 2 - The total amount of loans and advances increased by 1.1% in June 2025, with a 2.5% increase in the first half of the year [1] - Loans used in Hong Kong (including trade finance) and loans used outside Hong Kong rose by 0.9% and 1.8% respectively in June [1] - The loan-to-deposit ratio for HKD increased from 70.5% at the end of May to 72.0% at the end of June due to a decrease in HKD deposits [1] Group 3 - In June, the HKD money supply M2 and M3 both decreased by 0.8%, but increased by 8.4% compared to the same period last year [2] - Seasonally adjusted HKD money supply M1 rose by 4.4% in June, reflecting a 23.7% increase year-on-year, partly due to investment-related activities [2] - The total money supply M2 and M3 both increased by 0.8% in June, with year-on-year increases of 11.5% for both M2 and M3 [2]

Group 1: Monetary Supply and Deposits - The broad money supply in Macau increased in May 2025, with M1 rising by 2.4% and M2 increasing by 1.2% to 815.7 billion MOP [1] - Resident deposits rose by 1.3% to 794.7 billion MOP, while non-resident deposits increased by 0.4% to 351.0 billion MOP [2] - The total deposits in the banking system increased by 1.4% to 1,361.7 billion MOP, with the composition of deposits being 19.2% MOP, 47.0% HKD, 8.7% RMB, and 23.4% USD [2] Group 2: Loans - Local private sector loans decreased by 1.4% to 498.5 billion MOP, and external sector loans fell by 7.6% to 495.2 billion MOP [3] - The total private sector loans declined by 4.6% to 993.7 billion MOP, with the currency composition being 22.3% MOP, 43.8% HKD, 8.8% RMB, and 21.8% USD [3] Group 3: Banking Operations - As of the end of May 2025, the loan-to-deposit ratio for local residents dropped to 49.3%, while the overall loan-to-deposit ratio, including non-residents, decreased to 73.0% [4] - The liquidity ratios for one month and three months stood at 65.7% and 57.9%, respectively [4] - The non-performing loan ratio increased to 5.7% due to a decline in total loans [4]

Core Insights - The Hong Kong banking system remains robust with ample capital and liquidity as of Q1 2025 [1][2] - Retail banking operating profit before tax increased by 15.8% year-on-year, driven by growth in foreign exchange and derivative income, as well as fees and commissions [1] - The net interest margin for retail banking narrowed to 1.51% from 1.53% in the same period last year [1] Loan and Deposit Trends - Total loans in the Hong Kong banking sector increased by 0.6% year-on-year, with loans used in Hong Kong and outside Hong Kong rising by 0.8% and 1.1% respectively [1] - Trade financing saw a decline of 4.7% year-on-year [1] - Total deposits increased by 3.5% year-on-year, with Hong Kong dollar deposits and US dollar deposits rising by 5.1% and 1.7% respectively [1] Asset Quality and Liquidity - The specific classified loan ratio in the Hong Kong banking system slightly increased from 1.96% at the end of Q4 2024 to 1.98% at the end of Q1 2025 [2] - The average liquidity coverage ratio for Class 1 institutions was 182.5%, significantly above the 100% regulatory minimum [2] - The total capital ratio for locally registered authorized institutions was 24.2% as of March 2025, well above the 8% international minimum requirement [2]

Monetary Supply - The broad money supply M2 in Macau increased by 1.3% month-on-month to 810.6 billion MOP as of March 2025, with M1 and quasi-monetary liabilities contributing to this growth [1][2] - M1 decreased by 1.8% in circulation but saw a rise of 10.5% in demand deposits, resulting in a month-on-month increase of 6.8% [2] - Year-on-year comparisons show M1 and M2 rising by 11.3% and 8.8% respectively [2] Deposits - Resident deposits rose by 1.3% to 789 billion MOP, while non-resident deposits increased by 9.1% to 360.1 billion MOP [3] - Total deposits in the banking system increased by 3.1% month-on-month to 1,360.2 billion MOP, with the composition of deposits being 19.1% MOP, 47.2% HKD, 7.8% RMB, and 24.0% USD [3] Loans - Local private sector loans decreased by 0.4% to 511.3 billion MOP, with specific sectors like transportation and hospitality seeing slight increases, while wholesale, retail, and construction sectors experienced declines [4] - Total private sector loans fell by 1.9% month-on-month to 1,024.2 billion MOP, with the currency composition being 21.9% MOP, 43.4% HKD, 11.6% RMB, and 20.3% USD [4] Operating Ratios - As of March 2025, the loan-to-deposit ratio for local residents decreased to 51.1% from 51.9% in February, while the overall loan-to-deposit ratio, including non-residents, fell to 75.3% from 79.1% [5] - The ratio of liquid assets to liabilities stood at 69.5% for one month and 56.6% for three months, with a non-performing loan ratio remaining stable at 5.5% [5]