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FINANCIAL SERVICES | Staff Reporter, Hong Kong
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Loan growth extends climb after rising 15% in March

This represents the fourteenth consecutive month of double-digit annual growth.

The banking system's total loans and advances rose 15% YoY in March, according to OCBC Treasury Research, which represents the fourteenth consecutive month of double-digit annual growth.

On a quarterly basis, loans for domestic use rose from 2.8% to 3.6% in Q1 amidst intensified borrowing for building, construction, property development and investment.

Also read: Will the looming property slowdown set back Hong Kong banks? 

Loans for domestic use excluding trade finance rose 15.3% amidst a stock market rally and strong performance from the stock market. Loans for use outside Hong Kong also grew 14.8% YoY after a slight moderation following a peak of 20.8% in November.

“HKD loans should have been attractive to offshore borrowers as a weak HKD effectively reduces the repayments and interest expenses,” OCBC noted.

However, curbs on excessive overseas expansion and expectation of easing bias from the central bank People Bank’s of China will likely weigh in on Mainland demand for offshore loans.

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