Deposits in July weaken

Total deposits with authorized institutions rose 0.8% this July from June with a 1% rise in Hong Kong dollar deposits.

Key deposit figures for Hong Kong in July showed a marked weakening compared to June on a month-to-month basis.

Total deposits with authorized institutions rose 0.8% this July from June with a 1% rise in Hong Kong dollar deposits, said the Monetary Authority. There was a 0.5% rise in foreign-currency deposits.

On the other hand, the figure for June rose 1.4% from May while Hong Kong dollar deposits inched upwards by 0.3%. Overall foreign-currency deposits rose by 2.4% in June from May.

In July, Renminbi deposits rose 1% to RMB563.2 billion. The total renminbi remittance for cross-border trade settlement amounted to RMB223.4 billion in July, compared with RMB241.4 billion in June.

Total loans and advances rose 1%, with both loans for use in Hong Kong and outside Hong Kong up 1%. As Hong Kong-dollar loans increased at a slower rate than deposits, the Hong Kong-dollar loan-to-deposit ratio edged down to 83.6% at the end of July.

Seasonally adjusted Hong Kong-dollar M1 grew1.9% in July and expanded 5.8% year on year. Unadjusted Hong Kong-dollar M3 increased 1% during the month and expanded 5% from a year earlier.