Hong Kong Deposits Jump 11.8% in 2025 as RMB Holdings Slip

Rebeca Moen
Jan 30, 2026 09:17

HKMA reports total deposits grew 11.8% for 2025 while December saw RMB deposits drop 4.2% to RMB960.1 billion amid corporate fund flows.

Hong Kong’s banking system closed 2025 with strong deposit growth, but December’s numbers reveal shifting dynamics in renminbi holdings that warrant attention from traders watching Asian capital flows.

The Hong Kong Monetary Authority reported January 30 that total deposits with authorized institutions rose 11.8% for the full year, with December alone adding 1.2%. Hong Kong dollar deposits climbed 3.8% annually, while foreign currency deposits outpaced local currency gains with a 1.7% monthly increase.

RMB Deposits Take a Hit

The standout figure: renminbi deposits dropped 4.2% in December to RMB960.1 billion. The HKMA attributed this decline to corporate fund flows rather than retail sentiment shifts. Cross-border trade settlement told a different story, with renminbi remittances jumping to RMB1,177.4 billion from November’s RMB1,033.0 billion—a 14% month-over-month surge.

That divergence matters. Corporations are moving RMB out of Hong Kong deposit accounts while simultaneously increasing trade settlement volumes through the city. This suggests active treasury management rather than capital flight.

Lending Activity Picks Up

Total loans and advances grew 1.3% in December, bringing full-year growth to 2.3%. Domestic lending (including trade finance) rose 1.2% while offshore-directed loans increased 1.8%.

The loan-to-deposit ratio actually improved, dropping to 72.9% from 73.2% in November. Hong Kong dollar deposits simply grew faster than lending demand—a sign of liquidity building in the system.

Q4 2025 saw domestic lending edge up 0.2% after contracting 0.4% the previous quarter. Residential mortgages drove gains while property development loans declined.

Money Supply Signals

Broad money measures (M2 and M3) both increased 0.4% in December and 4.2% year-over-year. The narrower M1 measure fell 2.0% monthly but jumped 11.7% annually—the HKMA flagged investment-related activities as a factor.

The Monetary Base stood at HK$2,040.0 billion at month-end, up 0.4% from November according to the Exchange Fund data released the same day.

The HKMA cautioned against reading too much into single-month fluctuations, noting that seasonal funding demands and business activities create volatility. For crypto traders monitoring fiat on-ramps in Asia’s key financial hub, the sustained deposit growth and active RMB flows suggest Hong Kong’s role as a capital conduit remains firmly intact heading into 2026.

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