HKMA system deposits jumped 1.2% in 2Q13

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According to Barclays, the HKMA’s May monetary statistics showed that system deposits (+1.2% m/m) have continued to grow, reversing declines in February and March on HK$ and US$ deposit outflows. 

RMB deposits rose by 3.1% m/m to RMB698bn. Loose liquidity conditions again drove banks to deploy surplus funds in trade finance (+6.3% m/m).

Here's more from Barclays:

Among the local Hong Kong banks, we prefer BOCHK (2388.HK; OW; PT HK$28.80) and Wing Hang Bank to OW (302 HK; OW; PT HK$84). 

After some HK$ and US$ deposit outflows in 1Q13 in search of better yield elsewhere, system deposits continued its growth trend in 2Q13, rising 1.2% m/m in May, with growth across all key currencies, US$ +1.4% m/m, RMB +3.1% m/m and HK$ +0.4% m/m.