Hong Kong Sees Foreign Currency Deposit Growth Amid Shifting Monetary Trends
Hong Kong’s banking system recorded divergent deposit flows in April 2025, with foreign currency holdings climbing 1.6% while HKD-denominated deposits contracted 0.7%. The HKMA’s monthly report reveals a 0.6% net increase in overall deposits, underscoring the city’s role as a global financial conduit.
Renminbi balances surged 7.4% to RMB1.03 trillion, fueled by corporate capital movements. Cross-border RMB settlements jumped 15% monthly to RMB1.36 trillion, reflecting deepening economic integration with mainland China.
Credit markets showed modest softening, with total loans dipping 0.2%. The stable HKD loan-to-deposit ratio of 72.3% indicates balanced liquidity conditions despite the marginal decline in both lending activity and local currency deposits.
