December saw total deposits with authorised financial institutions rise 0.6%, the Monetary Authority says. Hong Kong dollar deposits climbed 1.5% while foreign currency deposits fell 0.4%.

The authority said renminbi deposits amounted to 12.1 billion yuan, compared with 10.6 billion yuan in November.

Total loans and advances were little changed in December, as a decline of 0.5% in loans for use in Hong Kong almost offset an increase of 3.6% in loans for use outside Hong Kong.

Analysed by currency, Hong Kong dollar loans decreased while foreign-currency loans recorded an increase. As Hong Kong dollar deposits increased but Hong Kong dollar loans declined, the loan-to-deposit ratio fell to 82.6% in December.

Loans for building, construction, property development and investment, lending to financial concerns and manufacturing registered notable increases in the fourth quarter of 2004. However, transport-related loans decreased moderately during the quarter.

On a seasonally-adjusted basis, Hong Kong dollar M1 declined 0.7% in December but rose 16% from a year ago. Unadjusted Hong Kong dollar M2 and M3 both rose 1.4% during the month, and 4.8% and 4.6% respectively from a year earlier.