Hong Kong Deposits Rise 1.5% in April as Fixed Rates Climb, May 30

Hong Kong’s authorized institutions reported total deposits grew 1.5% in April 2026, with Hong Kong dollar deposits rising 1.3% and foreign currency deposits climbing 1.6%. Renminbi deposits jumped 4.1% to RMB1,077.3 billion, driven by corporate fund flows. Savers are increasingly turning to fixed deposit accounts to lock in higher interest rates as banks compete for deposits.

Deposit Growth Accelerates Across All Currencies

Total deposits with authorized institutions increased 1.5% in April 2026 compared to March. Hong Kong dollar deposits rose 1.3% while foreign currency deposits climbed 1.6%. Over the full year to end-April, total deposits grew 2.4% and HKD deposits increased 3.2%, showing steady demand for savings accounts. Renminbi deposits surged 4.1% to RMB1,077.3 billion, reflecting strong corporate activity and cross-border fund movements.

Fixed Deposit Rates Attract Savers Seeking Yield

Banks are offering competitive fixed deposit rates to capture growing deposit inflows. Public Bank and other lenders have launched promotions on foreign exchange rates for RMB and JPY deposits. Foreign currency fixed deposit rates range from 0.05% to 2.12% depending on term and currency, with HKD settlement rates serving as benchmarks for deposit pricing. Savers locking in 1-month to 2-month terms can secure rates above 2% on select currencies.

Loan Growth Slows While Mortgage Demand Weakens

Total loans and advances grew just 0.5% in April, with year-to-date growth at 3.6%. HKD loans for use in Hong Kong increased only 0.1% in April, while overseas loans rose 1.9%. The HKD loan-to-deposit ratio fell to 71.6% from 72.3% in March, indicating deposits are growing faster than lending demand. Mortgage applications dropped 7.5% month-on-month to 9,541 in April, with approved mortgage loans falling 9% to HK$36.5 billion.

Money Supply Expands as Investment Activity Picks Up

Hong Kong dollar M2 and M3 both increased 1.3% in April, with year-on-year growth of 3.1%. Seasonally-adjusted M1 fell 1.1% in April but surged 14.1% year-over-year, reflecting investment-related activities. Total M2 and M3 both grew 1.4% in April and 10.0% annually, showing broad money expansion across the economy. These gains reflect both deposit growth and increased investment positioning by households and businesses.

Final Thoughts

Hong Kong’s deposit growth outpaced lending in April, pushing savers toward fixed deposits offering 2%+ returns. With HKD loan-to-deposit ratios at 71.6% and mortgage demand weakening, fixed deposit rates remain attractive for conservative investors seeking yield without market risk.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.