No sign of significant outflows from Hong Kong's banking system: official report

HONG KONG - There was no sign of significant capital outflows from Hong Kong's banking system over the past six months, an official report said Wednesday.

The Hong Kong Monetary Authority (HKMA) said total deposits increased moderately in the banking system from the end of February to the end of August in its half-yearly monetary and financial stability report.

While acknowledging uncertainties that may affect equity market activities and heighten volatility in fund flows, the report stressed that Hong Kong has ample foreign reserves and a robust banking system, which can help it withstand the volatility.

The HKMA report also said the offshore renminbi banking business witnessed steady growth in Hong Kong.

Hong Kong's renminbi business will continue to benefit from connectivity programs with the mainland, a rising demand for renminbi assets globally, the Belt and Road Initiative and the development of the Guangdong-Hong Kong-Macao Greater Bay Area.

While the report pointed to Hong Kong's financial resilience, a major credit rating agency also on Wednesday affirmed the stable outlook of the global financial hub.

S&P Global Ratings kept Hong Kong's long-term rating at AA+ on the back of a sustained economic recovery.