The Hong Kong Monetary Authority reported on 31 August that total deposits with authorized institutions grew 0.9% during July 2026, with both Hong Kong dollar and foreign currency deposits advancing at the same rate. Over the 12 months ending July, total deposits expanded 5.8%, while Hong Kong dollar deposits increased 6.2%, signaling sustained confidence in the financial system.
- July deposit growth: 0.9% monthly; 5.8% year-to-date
- Renminbi deposits: Increased 2.9% to RMB1,125.4 billion
- Cross-border renminbi settlement: RMB1,383.7 billion in July vs. RMB1,277.7 billion in June
- Hong Kong dollar M2 and M3: Both increased 1.0% in July; up 5.6% and 5.5% year-over-year
Renminbi activity accelerated notably, with cross-border trade settlement remittances climbing to RMB1,383.7 billion in July from RMB1,277.7 billion the previous month, a month-on-month increase of approximately 8.3%. This uptick reflects ongoing internationalization of the renminbi and Hong Kong’s continued role as a regional financial hub for yuan-denominated transactions.
Lending growth remained modest, with total loans and advances rising just 0.2% in July but advancing 6.6% over the past year. Domestically-focused loans declined 0.3%, while offshore lending increased 1.7%. The Hong Kong dollar loan-to-deposit ratio tightened to 70.7% from 71.5% in June, reflecting stronger deposit accumulation relative to lending activity.
Broad money measures expanded steadily, with total M2 and M3 both growing 1.1% in July and 10.2% year-over-year. The HKMA cautioned that monthly volatility warrants a longer-term analytical perspective, noting that seasonal funding patterns and business cycles significantly influence deposit and lending flows.
