Hong Kong's total deposits dipped 1.1%

HK-dollar deposits also declined.

In a report, the Monetary Authority announced total deposits with authorised institutions dropped 1.1% in June, while Hong Kong-dollar deposits also dropped 1.1%.

Renminbi deposits in Hong Kong edged down 0.1% to RMB698 billion, while overall foreign-currency deposits decreased 1.2%. The total remittance of renminbi for cross-border trade settlement amounted to RMB270.8 billion for June, compared with RMB318.1 billion in the previous month.

Total loans and advances increased 3.3%. Loans for use in Hong Kong including trade finance went up 3.1%, while loans for use outside Hong Kong increased 3.9%. As Hong Kong-dollar loans increased while Hong Kong-dollar deposits declined, the Hong Kong-dollar loan-to-deposit ratio rose to 83.7% from 81.6%.

In the second quarter of 2013, loans for use in Hong Kong, including trade finance, expanded by 7.1%, following a rise of 2.9% in the previous quarter.

Seasonally adjusted Hong Kong-dollar M1 increased 1% in June and expanded 18.2% year on year. Unadjusted Hong Kong-dollar M3 declined 1% during the month but grew 9.7% from a year earlier.