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Foreign currency swap deposits fell by a further 7.1% in November. They have now halved since the peak a year ago.

The rise in foreign currency deposits was accounted for by a 1.7% increase in US$ deposits and a 2.7% increase in non-US$ deposits in the month.

Loans and Advances

Total outstanding loans and advances rose by 1% in November after a fall of 0.9% in October. The rise was attributable to a 0.9% increase in domestic loans and a 1.2% increase in loans for use outside Hong Kong. Analysed by currency, HK$ loans rose by 0.8% in the month and foreign currency loans rose by 1.1%. In line with the rise in HK$ loans and the fall in HK$ deposits, HK$ loan-to-deposit ratio rebounded from 104.8% in October to 108% in November after falling for five consecutive months since June.

Money Supply

HK$M1 dropped by 0.6% in November, in line with the decrease in demand deposits. HK$M2 and HK$M3 fell by 2% and 1.9% respectively in the month, compared with their 1.6% increases in October.