Hong Kong bank deposits rose 11.5 per cent in the first half as investors chased highly anticipated IPOs

Hong Kong dollar deposits stood at HK$7.87 trillion, up from HK$7.06 trillion in the year-earlier period

Deposits will continue to grow as Chinese tech companies launch IPOs in Hong Kong following tighter regulatory scrutiny on overseas listings by Beijing

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Hong Kong dollar deposits in the city’s banking system stood at HK$7.87 trillion (US$1.01 trillion) in the first half. Photo: Bloomberg

Published: 8:38pm, 30 Jul 2021Updated: 10:05pm, 30 Jul 2021

The amount of money deposited in Hong Kong’s banking system jumped in the first half as investors targeted a series of hotly anticipated initial public offerings in the city, with the sector also benefiting from the economic recovery.

Deposits in the local currency stood at HK$7.87 trillion (US$1.01 trillion) at the end of June, 11.5 per cent higher compared to HK$7.06 trillion in the year-earlier period, data from the Hong Kong Monetary Authority (HKMA) showed on Friday.

Together with foreign currency deposits, the amount held in bank accounts rose by 7.9 per cent year on year in the first half to HK$15.18 trillion.

The strong growth in deposits was “caused by fund flows associated with large-scale IPO activities”, the HKMA said in an statement on Friday.

The increase in deposits in the first half followed a 5.4 per cent increase in total deposits last year as a whole, which was also driven by capital inflows chasing a slew of popular IPOs.