The following is issued on behalf of the Hong Kong Monetary Authority:

     The Hong Kong Monetary Authority (HKMA) announced today (August 30) that the total assets of the Exchange Fund amounted to HK$3,970.9 billion as at July 31, 2024, HK$7.7 billion lower than that at the end of June 2024. Foreign currency assets decreased by HK$7.2 billion and Hong Kong dollar assets decreased by HK$0.5 billion.
      
     The decline in foreign currency assets was mainly due to a reduction in the month-end balances of unsettled purchase of securities, which was partly offset by mark-to-market revaluation of investments. The decline in Hong Kong dollar assets was mainly due to mark-to-market revaluation of Hong Kong equities, which was partly offset by an increase in placements with banks.
      
     The Currency Board Account shows that the Monetary Base at the end of July 2024 was HK$1,923.2 billion, decreased by HK$4.2 billion, or 0.2 per cent, from the end of June 2024. The decline was mainly due to the decrease in the outstanding amount of Certificates of Indebtedness, which was partly offset by amortisation of discount on Exchange Fund Bills and Notes issued.
      
     The amount of Backing Assets increased by HK$8.2 billion, or 0.4 per cent, to HK$2,155.4 billion at the end of July 2024. The increase was mainly attributable to mark-to-market revaluation of investments and interest from investments, which were partly offset by the redemption of Certificates of Indebtedness. The Backing Ratio increased from 111.41 per cent at the end of June 2024 to 112.07 per cent at the end of July 2024.
 
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     At present, four press releases relating to the Exchange Fund's data are issued by the HKMA each month. Three of these releases are issued to disseminate monetary data in accordance with the International Monetary Fund's Special Data Dissemination Standard (SDDS). The fourth press release, on the Exchange Fund's Abridged Balance Sheet and Currency Board Account, is made in accordance with the HKMA's policy of maintaining a high level of transparency. For the month of August 2024, the scheduled dates for issuing the press releases are as follows:
 

The following is issued on behalf of the Hong Kong Monetary Authority:

     The Hong Kong Monetary Authority (HKMA) released today (August 30) the analytical data on the Hong Kong Special Administrative Region's foreign currency reserves and foreign currency liquidity as at the end of July 2024 (Annex). These data are published monthly in the Template on International Reserves and Foreign Currency Liquidity in accordance with the International Monetary Fund's Special Data Dissemination Standard (SDDS).
 
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     At present, four press releases relating to the Exchange Fund's data are issued by the HKMA each month. Three of these releases are issued to disseminate monetary data in accordance with the International Monetary Fund's SDDS. The fourth press release, on the Exchange Fund's Abridged Balance Sheet and Currency Board Account, is made in accordance with the HKMA's policy of maintaining a high level of transparency. For the month of August 2024, the scheduled dates for issuing the press releases are as follows:
 

The following is issued on behalf of the Hong Kong Monetary Authority:

     The Hong Kong Monetary Authority announced the results of the residential mortgage survey for July 2024.
      
     The number of mortgage applications in July increased month-on-month by 0.7 per cent to 6 740.
      
     Mortgage loans approved in July increased by 1.5 per cent compared with June to HK$24.8 billion. Among these, mortgage loans financing primary market transactions increased by 0.7 per cent to HK$8.6 billion and those financing secondary market transactions decreased by 1 per cent to HK$13.7 billion. Mortgage loans for refinancing increased by 21.5 per cent to HK$2.5 billion. 
      
     Mortgage loans drawn down during July decreased by 32.3 per cent compared with June to HK$16.4 billion. 
      
     The ratio of new mortgage loans priced with reference to HIBOR decreased from 90.4 per cent in June to 89.8 per cent in July. The ratio of new mortgage loans priced with reference to best lending rates increased from 4.3 per cent in June to 4.6 per cent in July.
      
     The outstanding value of mortgage loans increased month-on-month by 0.1 per cent to HK$1,868 billion at end-July. 
      
     The mortgage delinquency ratio remained unchanged at 0.1 per cent and the rescheduled loan ratio remained unchanged at nearly 0 per cent.

The following is issued on behalf of the Hong Kong Monetary Authority:

     According to statistics published today (August 30) by the Hong Kong Monetary Authority, total deposits with authorized institutions increased by 0.6 per cent in July 2024. Among the total, Hong Kong dollar deposits and foreign currency deposits increased by 0.2 per cent and 0.9 per cent respectively in July. In the year to end-July, total deposits and Hong Kong dollar deposits grew by 3.8 per cent and 1.3 per cent respectively. Renminbi deposits in Hong Kong decreased by 0.4 per cent in July to RMB1,057.5 billion at the end of July. The total remittance of renminbi for cross-border trade settlement amounted to RMB 1,281.5 billion in July, compared with RMB1,260.8 billion in June. It should be noted that changes in deposits are affected by a wide range of factors, such as interest rate movements and fund-raising activities. It is therefore more appropriate to observe the longer-term trends, and not to over-generalise fluctuations in a single month.

     Total loans and advances decreased by 1.0 per cent in July, and decreased by 2.9 per cent in the year to end-July. Among the total, loans for use in Hong Kong (including trade finance) decreased by 1.4 per cent while loans for use outside Hong Kong increased by 0.3 per cent in July. The Hong Kong dollar loan-to-deposit ratio decreased to 80.0 per cent at the end of July from 81.3 per cent at the end of June, as Hong Kong dollar deposits increased while Hong Kong dollar loans decreased.

     Hong Kong dollar M2 and M3 both increased by 0.3 per cent in July and both increased by 2.0 per cent when compared to a year ago. The seasonally-adjusted Hong Kong dollar M1 increased by 2.8 per cent in July while decreased by 3.0 per cent compared to a year ago, reflecting in part investment-related activities. Total M2 and total M3 both increased by 0.7 per cent in July. Compared to a year earlier, total M2 and total M3 both increased by 7.1 per cent.

     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.

     The Census and Statistics Department (C&SD) released the latest figures on retail sales today (August 30).

     The value of total retail sales in July 2024, provisionally estimated at $29.1 billion, decreased by 11.8% compared with the same month in 2023. The revised estimate of the value of total retail sales in June 2024 decreased by 9.7% compared with a year earlier. For the first 7 months of 2024 taken together, it was provisionally estimated that the value of total retail sales decreased by 7.3% compared with the same period in 2023.

     Of the total retail sales value in July 2024, online sales accounted for 7.8%. The value of online retail sales in that month, provisionally estimated at $2.3 billion, increased by 1.0% compared with the same month in 2023. The revised estimate of online retail sales in June 2024 increased by 5.6% compared with a year earlier. For the first 7 months of 2024 taken together, it was provisionally estimated that the value of online retail sales decreased by 0.1% compared with the same period in 2023.

     After netting out the effect of price changes over the same period, the provisional estimate of the volume of total retail sales in July 2024 decreased by 13.3% compared with a year earlier. The revised estimate of the volume of total retail sales in June 2024 decreased by 11.2% compared with a year earlier. For the first 7 months of 2024 taken together, the provisional estimate of the total retail sales decreased by 8.9% in volume compared with the same period in 2023.

     Analysed by broad type of retail outlet in descending order of the provisional estimate of the value of sales and comparing July 2024 with July 2023, the value of sales of commodities in supermarkets decreased by 4.2%. This was followed by sales of other consumer goods not elsewhere classified (-6.0% in value); jewellery, watches and clocks, and valuable gifts (-25.0%); wearing apparel (-16.6%); food, alcoholic drinks and tobacco (-4.1%); electrical goods and other consumer durable goods not elsewhere classified (-4.1%); commodities in department stores (-24.3%); motor vehicles and parts (-27.9%); fuels (-9.8%); furniture and fixtures (-22.4%); footwear, allied products and other clothing accessories (-17.9%); Chinese drugs and herbs (-24.9%); and optical shops (-15.7%).

     On the other hand, the value of sales of medicines and cosmetics increased by 3.5% in July 2024 over a year earlier. This was followed by sales of books, newspapers, stationery and gifts (+26.1% in value).

     Based on the seasonally adjusted series, the provisional estimate of the value of total retail sales decreased by 4.5% in the three months ending July 2024 compared with the preceding three-month period, while the provisional estimate of the volume of total retail sales decreased by 5.1%.

Commentary

     A government spokesman said that the value of total retail sales declined further in July from a year earlier amid the continued impact of the change in consumption patterns and the strong Hong Kong dollar. More outbound travels by residents during the summer holidays was also one of the factors. 

     Looking ahead, the spokesman said that the retail sector will still face challenges in the near term. Nonetheless, the Central Government's various measures benefitting Hong Kong, as well as the SAR Government's strenuous efforts to promote a mega event economy, boost market sentiment and support the development of the sector, should help stimulate retail businesses. Continued growth of the economy and rising employment earnings should also provide support to the retail sector. 

     The spokesman added that the SAR Government will continue to assist small and medium-sized enterprises, including those in the retail sector, in adopting ready-to-use digital technology solutions through the Digital Transformation Support Pilot Programme to accelerate digital transformation. The E-commerce Easy under the BUD Fund was also officially launched last month with a view to assisting enterprises to develop the Mainland market through electronic commerce business. The Government will continue to assist the local retail sector in upgrading and transformation.

Further information

     Table 1 presents the revised figures on value index and value of retail sales for all retail outlets and by broad type of retail outlet for June 2024 as well as the provisional figures for July 2024. The provisional figures on the value of retail sales for all retail outlets and by broad type of retail outlet as well as the corresponding year-on-year changes for the first 7 months of 2024 taken together are also shown.

     Table 2 presents the revised figures on value of online retail sales for June 2024 as well as the provisional figures for July 2024. The provisional figures on year-on-year changes for the first 7 months of 2024 taken together are also shown.

     Table 3 presents the revised figures on volume index of retail sales for all retail outlets and by broad type of retail outlet for June 2024 as well as the provisional figures for July 2024. The provisional figures on year-on-year changes for the first 7 months of 2024 taken together are also shown.

     Table 4 shows the movements of the value and volume of total retail sales in terms of the year-on-year rate of change for a month compared with the same month in the preceding year based on the original series, and in terms of the rate of change for a three-month period compared with the preceding three-month period based on the seasonally adjusted series.

     The classification of retail establishments follows the Hong Kong Standard Industrial Classification (HSIC) Version 2.0, which is used in various economic surveys for classifying economic units into different industry classes.

     These retail sales statistics measure the sales receipts in respect of goods sold by local retail establishments and are primarily intended for gauging the short-term business performance of the local retail sector. Data on retail sales are collected from local retail establishments through the Monthly Survey of Retail Sales (MRS). Local retail establishments with and without physical shops are covered in MRS and their sales, both through conventional shops and online channels, are included in the retail sales statistics.

     The retail sales statistics cover consumer spending on goods but not on services (such as those on housing, catering, medical care and health services, transport and communication, financial services, education and entertainment) which account for over 50% of the overall consumer spending. Moreover, they include spending on goods in Hong Kong by visitors but exclude spending outside Hong Kong by Hong Kong residents. Hence they should not be regarded as indicators for measuring overall consumer spending.

     Users interested in the trend of overall consumer spending should refer to the data series of private consumption expenditure (PCE), which is a major component of the Gross Domestic Product published at quarterly intervals. Compiled from a wide range of data sources, PCE covers consumer spending on both goods (including goods purchased from all channels) and services by Hong Kong residents whether locally or abroad. Please refer to the C&SD publication "Gross Domestic Product by Expenditure Component" for more details.

     More detailed statistics are given in the "Report on Monthly Survey of Retail Sales". Users can browse and download this publication at the website of the C&SD (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1080003&scode=530).

     Users who have enquiries about the survey results may contact the Distribution Services Statistics Section of the C&SD (Tel: 3903 7400; email : mrs@censtatd.gov.hk).