Hong Kong bank deposits rose 0.4% in September, supported by an increase in foreign currency holdings, while Hong Kong dollar deposits declined, according to data from the Hong Kong Monetary Authority (HKMA).
Total deposits with authorised institutions increased 0.4% during the month. Hong Kong dollar deposits fell 1.1%, while foreign currency deposits rose 1.6%, mainly reflecting corporate fund flows, the HKMA said.
Renminbi deposits in Hong Kong increased 2.6% to 1.13 trillion yuan ($158 billion) at the end of September. Cross-border trade-related renminbi remittances also rose to 1.29 trillion yuan from 1.10 trillion yuan in August.
Total deposits grew 7.7% in the 12 months to September, while Hong Kong dollar deposits increased 7.3%.
Total loans and advances rose 0.7% in September, bringing annual growth to 7.7%. Loans for use in Hong Kong, including trade finance, increased 0.7%, while lending for use outside the city rose 0.6%.
The Hong Kong dollar loan-to-deposit ratio climbed to 70.3% at the end of September from 69.3% a month earlier, as lending increased and Hong Kong dollar deposits declined.
For the third quarter, loans for use in Hong Kong, including trade finance, grew 0.8%, slowing from 3% in the previous quarter.
By economic use, trade finance increased, while lending to the building, construction, property development and investment sectors declined.
Hong Kong dollar M2 and M3 money supply both fell 0.8% in September, although each was 7.5% higher than a year earlier.
Seasonally adjusted Hong Kong dollar M1 declined 0.6% during the month but rose 4.4% year on year, partly reflecting investment-related activity.
Total M2 and M3, which include foreign currency deposits, both increased 0.4% in September. They were up 10.1% and 10%, respectively, from a year earlier.
The HKMA cautioned against drawing conclusions from monthly movements, noting that monetary statistics can fluctuate because of seasonal funding requirements, interest rate changes and business and investment activities.
