Hong Kong Dollar Deposits Rise 0.9% in June 2026, HKMA Reports

Total deposits in Hong Kong’s banking system rose marginally by 0.1% in June 2026, according to data released by the Hong Kong Monetary Authority (HKMA) on July 31. Driving the increase, Hong Kong dollar deposits climbed 0.9%, while foreign currency deposits declined 0.5%. Renminbi deposits dropped 3.6% to RMB1,093.5 billion, reflecting a softening appetite for the Chinese currency.

The first half of 2026 has seen steady growth, with total deposits rising 4.9% and Hong Kong dollar deposits increasing by 5.3%. Despite this, the monthly decline in renminbi deposits highlights volatility within cross-border capital flows. However, renminbi remittances for trade settlement surged to RMB1,277.7 billion in June, up from RMB1,129.6 billion in May, indicating robust trade activity.

Loans and advances grew by 1.3% in June, marking a 6.4% increase for the first half of the year. Loans for use in Hong Kong, including trade finance, rose 1.4%, while loans for use outside the city gained 1.0%. The Hong Kong dollar loan-to-deposit ratio edged up to 71.5% from 71.0% in May, suggesting faster loan growth relative to deposit accumulation.

Broad money supply figures also pointed to moderate expansion. Hong Kong dollar M2 and M3 both increased 0.8% in June, registering annual growth of 2.6%. Total M2 and M3 rose 0.1% month-on-month and 9.2% year-on-year. In contrast, seasonally adjusted Hong Kong dollar M1 fell 1.0% in June and 3.0% annually, driven partly by investment-related cash movements.

The HKMA cautioned against overinterpreting short-term fluctuations, citing factors such as interest rate movements, seasonal demand, and fundraising activities that can skew monthly data. A longer-term perspective provides a better gauge of monetary trends under Hong Kong’s Linked Exchange Rate System.

This release follows a 2.3% deposit growth in May, as reported by the HKMA on June 30, and a subsequent announcement on July 7 that Hong Kong’s official foreign currency reserves totaled USD 445.9 billion at the end of June. These statistics underscore Hong Kong’s role as a financial hub and the continued resilience of its banking system amid global uncertainty.

Traders and investors watching the Hong Kong market should keep an eye on renminbi deposit trends and the loan-to-deposit ratio as potential indicators of liquidity shifts and credit demand. The next monetary statistics report is expected in late August, providing further insight into whether June’s trends hold steady or signal new shifts in the city’s financial dynamics.

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