Total loans in Hong Kong down 1.7% in August

Total deposits rose by 0.6% during the month, however.

Loans and advances extended by banks in Hong Kong decreased by 1.7% in August compared to a year ago, according to the latest statistics released by the Hong Kong Monetary Authority.

Loans for use in Hong Kong, including trade finance, fell by 0.2% during the period. Loans for use outside the city also fell, by 0.5%.

Total deposits in authorized institutions, meanwhile, rose by 0.6% in August.

Hong Kong dollar deposits and foreign currency deposits rose by 0.4% and 0.8%, respectively.

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Renminbi deposits in Hong Kong increased by 6% in August to RMB962.5b at the end of August, mainly reflecting fund flows of corporates, the HKMA said.

Year to date, total deposits and Hong Kong dollar deposits have grown by 2% and 1.9% respectively.  

The total remittance of renminbi for cross-border trade settlement, meanwhile, amounted to RMB1.12t in August, higher than in July.