Hong Kong’s loans up 3.6% in April as IPOs and high rates lift banks

Deposits also rose during the month.

Hong Kong’s loans rose 3.6% year-to-date in April 2026, with banks expected to benefit from higher rates, and the recovery of IPOs and the housing market.

Loans and advances also rose by 0.5% in April compared to a year ago, with loans for use in Hong Kong and outside the city rising by 0.1% and 1.9%, respectively, according to data from the Hong Kong Monetary Authority (HKMA).

Meanwhile, Hong Kong dollar and foreign currency deposits increased by 1.3% and 1.6%, respectively, over the same period.

Renminbi deposits in Hong Kong also rose by 4.1% during the same month, reflecting fund flows of corporates, HKMA said.

An earlier report by Jefferies Equity Research said that banks in Hong Kong will benefit from higher rates, a robust initial public offering (IPO) pipeline, and the stabilising of the local housing market.

There are 470 active IPO applications in the Hong Kong Stock Exchange (HKEX) as of April, up 61% compared to March, Jefferies said.

“Together with further stabilization of local housing market, we believe Q1 [net interest margin (NIM)] and loan growth trend are likely to stay favorable for HK banks,” Jefferies wrote in a 19 May report.