Total deposits in Hong Kong up 1.1% in May

Loans registered a decline, however, according to central bank data.

Total deposits in Hong Kong’s authorised financial institutions rose by 1.1% in May, according to data from the Hong Kong Monetary Authority (HKMA).

Hong Kong dollar deposits and foreign currency deposits rose by 0.3% and 1.8%, respectively during the same month.

As of end-May, total deposits and Hong Kong dollar deposits have grown by 3.2% and 0.9%.

Renminbi deposits in Hong Kong also rose by 4.2% in May to RMB1.13t, mainly driven by fund flows of corporates, according to the HKMA.

Total remittance of renminbi for cross-border trade settlement amounted to RMB1.18t during the same month, lower than the RMB1.25t in April.

Total loans and advances decreased by 0.4% in May, and decreased by 2.4% in the year to end-May.

Amongst the total, loans for use in Hong Kong (including trade finance) and loans for use outside Hong Kong decreased by 0.3% and 0.7% respectively, the HKMA observed.

The Hong Kong dollar loan-to-deposit ratio decreased to 81.4% at the end of May from 82.1% at the end of April. This was due to Hong Kong dollar deposits increasing whilst Hong Kong dollar loans decreased, the HKMA said.