Total deposits held with Hong Kong’s authorized institutions rose 0.1% in June from the previous month, as growth in Hong Kong dollar deposits offset a decline in foreign currency deposits, while bank lending continued to strengthen, official data showed.
Figures released by the Hong Kong Monetary Authority (HKMA) showed Hong Kong dollar deposits increased 0.9% in June, while foreign currency deposits fell 0.5%.
In the first six months of 2026, total deposits expanded 4.9%, with Hong Kong dollar deposits up 5.3%.
Renminbi deposits in Hong Kong declined 3.6% during the month to 1.0935 trillion yuan ($152.5 billion) at the end of June.
However, cross-border trade settlement activity strengthened, with renminbi remittances rising to 1.2777 trillion yuan in June from 1.1296 trillion yuan in May.
The HKMA said monthly deposit movements can be influenced by factors including interest rate changes and fundraising activity, adding that longer-term trends provide a more reliable indicator than individual monthly fluctuations.
Bank lending gained momentum during the month, with total loans and advances rising 1.3% in June and 6.4% during the first half of the year.
Loans for use in Hong Kong, including trade finance, increased 1.4%, while loans for use outside the city rose 1.0%.
The Hong Kong dollar loan-to-deposit ratio climbed to 71.5% at the end of June from 71.0% a month earlier as loan growth outpaced the increase in Hong Kong dollar deposits.
During the second quarter, loans for use in Hong Kong grew 3.0%, matching the pace recorded in the previous quarter.
The increase was driven mainly by lending to financial firms and the manufacturing sector.
Broad money measures also expanded modestly. Hong Kong dollar M2 and M3 each rose 0.8% in June and were 2.6% higher than a year earlier. Total M2 and M3 increased 0.1% during the month and were up 9.2% year on year.
The seasonally adjusted Hong Kong dollar M1 fell 1.0% in June and was down 3.0% from a year earlier, reflecting, in part, investment-related activities.
The HKMA cautioned that monthly monetary statistics may be affected by seasonal funding demand as well as business and investment activities, and should therefore be interpreted with care.