August total deposits up 0.5%

Renminbi banking business on the rise as deposits grew 25.8% to RMB130.4bln.

Total deposits rose 0.5% in August, with a 0.4% and 0.7% rise in Hong Kong-dollar and foreign-currency deposits, the Monetary Authority says in its report.

Accounting for 4.9% of foreign-currency deposits, renminbi deposits grew 25.8% to RMB130.4 billion, reflecting the expanding scope of renminbi banking business in Hong Kong.

Total loans and advances rose 2.5%. Loans for use in Hong Kong grew 2.2% and loans for use outside Hong Kong rose 3.4%. As Hong Kong-dollar loans rose at a faster rate than deposits, the Hong Kong-dollar loan-to-deposit ratio rose to 78.5% at the end of August.

Seasonally adjusted Hong Kong-dollar M1 grew 3.6% in August and rose 12.6% year on year. Unadjusted Hong Kong-dollar M3 increased by 0.4% during the month and expanded by 5.2% on a year earlier.