Hong Kong September deposits up 0.4%, yuan deposits hit 1.13 trillion
Hong Kong Monetary Authority reports September 2026 deposits rose 0.4% month-on-month, with yuan deposits up 2.6% to 1.13 trillion yuan. Loans grew 0.7%, while the loan-to-deposit ratio increased to 70.3%. Authorities caution against overinterpreting monthly volatility.
The Hong Kong Monetary Authority (HKMA) reported on 30 October that total deposits held by authorised institutions rose 0.4 per cent in September 2026, driven by a 1.6 per cent increase in foreign-currency deposits, while Hong Kong dollar deposits fell 1.1 per cent. The HKMA attributed the shift mainly to corporate fund flows. From the start of the year to the end of September, total deposits and Hong Kong dollar deposits grew 7.7 per cent and 7.3 per cent respectively.
Renminbi deposits in Hong Kong increased 2.6 per cent in September, reaching 1,129.9 billion yuan at month-end. Cross-border trade settlement in renminbi totalled 1,289.6 billion yuan in September, up from 1,103.8 billion yuan in August. The HKMA noted that deposit movements are influenced by factors including interest-rate trends and market fundraising activities, and advised focusing on longer-term trends rather than overinterpreting monthly fluctuations.
Total loans and advances rose 0.7 per cent in September, bringing the year-to-date increase to 7.7 per cent. Loans used in Hong Kong, including trade finance, and loans used outside Hong Kong grew 0.7 per cent and 0.6 per cent respectively. Because Hong Kong dollar loans rose while Hong Kong dollar deposits fell, the loan-to-deposit ratio in Hong Kong dollars increased to 70.3 per cent at end-September from 69.3 per cent at end-August.
In the third quarter of 2026, loans used in Hong Kong (including trade finance) rose 0.8 per cent quarter-on-quarter, following a 3.0 per cent increase in the previous quarter. By economic purpose, trade financing increased while lending to construction, property development and investment declined.
Hong Kong dollar money supply M2 and M3 both fell 0.8 per cent in September but were up 7.5 per cent year-on-year. Seasonally adjusted Hong Kong dollar M1 dropped 0.6 per cent in September, rising 4.4 per cent year-on-year, partly reflecting investment-related activity. Total money supply M2 and M3 each rose 0.4 per cent in September, with year-on-year increases of 10.1 per cent and 10.0 per cent respectively.
The HKMA cautioned that monthly monetary statistics may be affected by short-term factors such as seasonal funding demand and business or investment activities, and should be interpreted with care.