Recent data from the Hong Kong Monetary Authority (HKMA) shows that while bank deposits in the region climbed in November 2025, lending activity remained relatively stagnant. Total deposits saw a monthly increase of 0.7%, driven largely by a 1.1% rise in foreign currency holdings and a modest 0.2% uptick in Hong Kong dollar (HKD) accounts.
On an annual basis, total deposits have grown by a significant 10.5%. Renminbi (RMB) deposits also saw growth, reaching RMB 1.0b after a 0.6% monthly rise, while cross-border trade settlements involving the currency increased to RMB 1.03b.
Despite these gains, the HKMA advised looking at these figures through a long-term lens, noting that monthly data is often skewed by shifting interest rates and capital-raising events. The lending environment showed little movement, with total loans increasing by just 0.1% in November.
While international lending grew by 0.4%, domestic loans—including trade finance—dipped by 0.1%. Because HKD deposits grew while domestic lending shrank, the Hong Kong dollar loan-to-deposit ratio fell slightly to 73.2%. Monetary supply also trended upward. Both M2 and M3 measures saw a 0.9% monthly increase, while the seasonally adjusted M1 rose by 1.2% in November, a jump the HKMA attributed to increased investment activity.
The Authority concluded by reminding observers that these monthly statistics can be volatile due to temporary factors like seasonal funding demands, suggesting a cautious interpretation of the short-term data.
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