Hong Kong sees 10% YoY M3 growth in May

It's a twelve-month high.

Hong Kong's M3 money supply grew 1.6% MoM and 10.0% YoY in May,compared with a 2.2% MoM increase and 8.6% YoY increase in April.

According to a research note from CCB International, although both M1 and M3 MoM growth rates slowed in May, M3 YoY growth hit to a twelve-month high.

CCB International also sees upside potential for the HSI in the coming months based on our earlier analysis of the correlation between M3 growth and the index.

Meanwhile, the report also noted that Hong Kong’s M1 declined 0.5% MoM and increased 6.3% YoY in May (versus a 2.1% MoM increase and 9.2% YoY increase in April).