Rebeca Moen
Aug 31, 2026 09:21
HKMA reports 0.9% rise in deposits for July 2026; RMB deposits increase 2.9% to RMB1.13T, cross-border trade remittance hits RMB1.38T.
Total deposits in Hong Kong’s banking system climbed 0.9% in July 2026, according to data released by the Hong Kong Monetary Authority (HKMA) on August 31. Hong Kong dollar (HKD) and foreign currency deposits both mirrored the overall increase, rising 0.9% month-on-month. Year-to-date, HKD deposits grew 6.2%, while total deposits advanced 5.8%.
Notably, renminbi (RMB) deposits surged 2.9% in July, reaching RMB1.13 trillion. This marks a rebound from June, when RMB deposits fell 3.6% to RMB1.09 trillion. Cross-border RMB trade settlement also saw a sharp uptick, totaling RMB1.38 trillion in July—an 8.3% increase from June’s RMB1.28 trillion.
On the lending side, total loans and advances edged up 0.2% in July, resulting in a 6.6% increase year-to-date. However, loans for use in Hong Kong, including trade finance, contracted by 0.3%, while loans for use outside the territory rose 1.7%. This divergence reflects shifting capital allocation trends, potentially influenced by global trade and investment dynamics.
The HKD loan-to-deposit ratio dipped to 70.7% at the end of July from 71.5% in June, driven by rising HKD deposits and declining HKD loans. Meanwhile, money supply indicators showed modest growth: HKD M2 and M3 both increased by 1.0% in July and were up 5.6% and 5.5%, respectively, year-on-year. Total M2 and M3 rose 1.1% month-on-month, with annual growth accelerating to 10.2%.
These figures build on June 2026 trends, where HKMA reported a 0.1% rise in total deposits and a 1.3% increase in loans and advances. However, RMB deposits had declined sharply in June, underscoring the volatility inherent in short-term monetary metrics.
The HKMA reiterated that monthly fluctuations in monetary statistics are influenced by factors like interest rate movements, seasonal funding needs, and broader macroeconomic conditions. Analysts often emphasize longer-term trends over single-month volatility to gauge economic health more accurately.
As of July 31, the monetary base stood at HK$2.08 trillion. The sustained growth in deposits and RMB activity highlights Hong Kong’s ongoing role as a key offshore RMB hub, even as regional and global economic uncertainties loom. Traders and investors should watch future HKMA releases for signs of sustained deposit growth and cross-border RMB activity, as these metrics often serve as barometers for broader economic trends in the region.
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