HK RMB deposits up 2.5 pct in March

Total deposits with authorized institutions dropped 1 percent in March, while Hong Kong-dollar deposits dropped 0.8 percent and Renminbi deposits rose 2.5 percent, the Monetary Authority of Hong Kong announced Tuesday.

Renminbi deposits in Hong Kong rose 2.5 percent to 668.1 billion RMB (about 108.3 billion U.S. dollars), while overall foreign-currency deposits decreased 1.2 percent. The total remittance of Renminbi for cross-border trade settlement amounted to 340.8 billion RMB for March, compared with 221.7 billion RMB in the previous month.

Total loans and advances increased 1.2 percent in March. Loans for use in Hong Kong including trade finance went up 1.2 percent, while loans for use outside Hong Kong increased 1.4 percent. As Hong Kong-dollar loans increased while Hong Kong-dollar deposits declined, the Hong Kong-dollar loan-to-deposit ratio edged up to 80.6 percent at the end of March from 79.7 percent a month ago.

In the first quarter of 2013, loans for use in Hong Kong including trade finance expanded by 3.1 percent, following a rise of 2.4 percent in the previous quarter.

Seasonally adjusted Hong Kong-dollar M1 increased 0.3 percent in March and expanded 17.7 percent year on year. Unadjusted Hong Kong-dollar M3 declined 0.7 percent during the month but grew 9.2 percent from a year earlier.