The renminbi deposits with authorized institutions in Hong Kong grew 1.7 percent to 28.3 billion yuan (3.77 billion US dollars) at the end of August, government statistics released Friday showed.

The Hong Kong Monetary Authority in the press release attributed the growth to "a second issuance of renminbi- denominated bonds" in the region.

Total deposits rose 1.9 percent in the month, of which the Hong Kong dollar deposits grew by 1.4 percent and foreign currency deposits by 2.4 percent.

The month of August also saw total loans and advances rise 1.8 percent, with growth in both Hong Kong dollar and foreign currency loans. Loans for use in and outside Hong Kong expanded by 1.8 percent and 1.6 percent respectively.

The Hong Kong dollar loan-to-deposit ratio remained unchanged at 72.9 percent at the end of August, as Hong Kong dollar loans and deposits grew at roughly the same rate.

On a seasonally adjusted basis, Hong Kong dollar M1 increased by 0.8 percent in August and by 10.9 percent from a year earlier. Unadjusted Hong Kong dollar M2 and M3 both added 1.2 percent during the month, representing year-on-year growth of 18.7 percent and 18.6 percent respectively.

(Xinhua News Agency September 29, 2007)