Hong Kong M3 growth rose 13.1% YoY in June

Since April, momentum has been kept.

Both Hong Kong’s M1 and M3 money supply growth accelerated to 13.1% YoY in June, compared with 6.3% and 10.0% YoY in May.

According to a research report from CCB International, the Hong Kong’s M3 began to accelerate in April and kept up its momentum for the past three months.

The HSI is seen to rise in the coming month based on CCB International's earlier analysis of the correlation between M3 growth and the index.

Here's more from CCB International:

The value of Hong Kong retail sales in June declined 6.9% YoY to HK$37.1b compared with -3.9% YoY in May.

The contraction in jewelry & watch sales got worse, moving from 24.5% in May to 28.2% in June.

Food & beverage sales, supermarket sales and clothing sales increased 8.6%, 5.0% and 6.9% YoY respectively, while sales of electronic items declined 15.3% YoY.

Department store sales also declined 3.6% YoY in June.