“We found modest net outflow from HKD deposits in Hong Kong and modest net inflow of FX deposits in Singapore,” analysts Gurpreet Singh Sahi and Yingqiang Guo wrote in a note to investors late Monday. “We believe the debate on Hong Kong outflow/liquidity will remain active and the data points for September (and beyond) critical in shaping the same.”
Local-currency deposits declined in August by the most in more than a year, though the chief of Hong Kong’s de facto central bank attributed that to a dearth of initial public offerings and said there’s been a slight increase in the first three weeks of September. That was before a further escalation in violence in the city, culminating in the shooting of a protester Tuesday.
