Iris Coleman
Mar 31, 2026 10:24
HKMA February 2026 knowledge exhibits complete deposits up 0.9%, with renminbi deposits leaping 3.6% to RMB1,029.3 billion amid shifting forex preferences.
Hong Kong’s banking sector posted regular deposit progress in February, with complete holdings at licensed establishments climbing 0.9% whilst native forex deposits contracted barely, based on knowledge launched by the Hong Kong Financial Authority on March 31.
The standout determine: renminbi deposits surged 3.6% to succeed in RMB1,029.3 billion by month’s finish, crossing the symbolic trillion-yuan threshold. That progress got here regardless of cross-border commerce settlement volumes dropping to RMB866.5 billion from January’s RMB1,016.4 billion—a 14.7% month-over-month decline that implies the deposit accumulation displays positioning relatively than pure commerce flows.
Foreign money Divergence
Hong Kong greenback deposits fell 0.2% in February whereas overseas forex deposits jumped 1.7%. The cut up indicators continued hedging exercise and doable yield-seeking habits as depositors weigh forex publicity. Yr-to-date, HKD deposits nonetheless present 1.2% progress, indicating the February dip might show short-term.
The loan-to-deposit ratio for Hong Kong {dollars} ticked as much as 72.4% from 72.3% in January—a marginal transfer, however one pushed by deposits shrinking sooner than loans relatively than credit score enlargement.
Credit score Exercise Stays Modest
Complete loans and advances grew 0.6% in February, bringing the two-month enhance to 1.6%. Lending to be used inside Hong Kong (together with commerce finance) rose 0.4%, whereas offshore-directed loans gained 0.9%. Nothing dramatic, however in line with a monetary hub sustaining regular exercise.
Cash provide metrics painted a combined image. Hong Kong greenback M1—the narrowest measure masking money and demand deposits—jumped 12.6% year-over-year, which the HKMA attributed partly to “investment-related actions.” Broader measures M2 and M3 each confirmed 9.8% annual progress.
What Merchants Ought to Watch
The HKMA cautioned towards studying an excessive amount of into single-month figures, citing seasonal funding demand and transient elements. Honest level. However the renminbi deposit surge above RMB1 trillion, mixed with the HKD-to-foreign-currency shift, suggests institutional gamers are actively managing forex threat heading into Q2.
For crypto markets, Hong Kong’s financial stability knowledge issues as the town continues positioning itself as a digital asset hub. Wholesome deposit progress and manageable mortgage ratios point out the standard banking system stays sturdy—a prerequisite for regulators comfy increasing crypto licensing.
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