Hong Kong Dollar Money Supply M2 and M3 Rise 1.2% Year-on-Year

HKMA Releases March Money Supply Data

On April 30, the Hong Kong Monetary Authority (HKMA) published its latest statistics, revealing that Hong Kong dollar money supply M2 and M3 both recorded a 1.2% year-on-year increase in March 2026. Meanwhile, total deposits with authorized institutions rose 0.1% in March, reflecting the overall stable operation of Hong Kong's financial system.

Divergence in Deposit Structure

Looking at the specific figures, HKD deposits rose 0.7% in March, outperforming the overall level, while foreign currency deposits fell 0.3%, indicating a clear divergence between the two. Extending the timeframe to the first quarter of 2026, total deposits and HKD deposits increased by 1.0% and 1.9% respectively, suggesting that HKD deposits performed more robustly on a quarterly basis.

Notably, RMB deposits in Hong Kong rose 0.6% in March, reaching RMB 1,035.2 billion by the end of March and continuing to hold above the one-trillion-yuan mark. This data underscores Hong Kong's firmly established position as the world's largest offshore RMB business hub.

Sharp Growth in Cross-Border RMB Settlement

Regarding cross-border trade settlement, total RMB remittances reached RMB 1,290 billion in March, surging approximately 48.9% from RMB 866.5 billion in February. This significant increase reflects a notable recovery in cross-border trade activity in March and the continued expansion of RMB usage in international trade settlement.

Market Interpretation Should Focus on Long-Term Trends

The HKMA noted that deposit movements are influenced by multiple factors, including interest rate trends and market fundraising activities, and therefore it is advisable to observe longer-term trends rather than over-interpret fluctuations in individual months.

Currently, as fintech and AI technologies are being deeply integrated into the banking industry, data-driven intelligent analytical tools have become essential for institutions to interpret changes in money supply and anticipate capital flows. Several Hong Kong banks and financial institutions are actively deploying AI-powered risk management and fund management systems to more precisely address the challenges posed by interest rate and exchange rate volatility.

Overall, the moderate growth in HKD money supply and the stable performance of the deposit structure indicate that the fundamentals of Hong Kong's financial market remain healthy. Going forward, amid continued uncertainty in the direction of global monetary policy, the market will closely monitor subsequent data releases from the HKMA and related policy developments.