Total loans and advances increased by 0.5% in February. Among the total, loans for use in Hong Kong (including trade finance) went up by 0.9% and loans for use outside Hong Kong decreased by 0.3% from a month ago. The Hong Kong-dollar loan-to-deposit ratio edged up to 89.9% at the end of February from 89.4% at the end of January, as Hong Kong-dollar deposits decreased while Hong Kong-dollar loans stayed virtually unchanged.
Hong Kong dollar M2 and M3 both declined by 0.5% in February, but grew by 1.9% and 1.8% respectively compared to a year ago. The seasonally-adjusted Hong Kong dollar M1 rose by 1.3% in February, and increased by 0.4% compared to a year ago, reflecting in part investment-related activities. Total M2 and M3 both edged up by 0.1% in February, and expanded by 2.3% and 2.2% respectively from a year earlier.
As monthly monetary statistics are subject to volatilities due to a wide range of transient factors, such as seasonal and IPO-related funding demand as well as business and investment-related activities, caution is required when interpreting the statistics.