Depositors keep their finances fluid as rates tumble in November

Falling interest rates last month encouraged more depositors to move their money from time deposits into demand deposits and savings deposits, the Hong Kong Monetary Authority says.

Hong Kong dollar demand deposits grew sharply by 5.5 per cent and savings deposits by 9.9 per cent in November, the authority said.

Time deposits fell for the third consecutive month, by 3.2 per cent.

Improved sentiment in stock and property markets might also have induced some depositors to place deposits at the shorter end, the authority said Total deposits dropped by 0.7 per cent in November, mainly due to a reduction in foreign currency deposits.

Hong Kong dollar deposits rose slightly by 0.2 per cent, while foreign currency deposits contracted by 1.7 per cent.

As a result, the share of Hong Kong dollar deposits to total deposits increased to 57.2 per cent at the end of last month, from 56.7 per cent at the end of October.