HKD deposits rose a measly 0.2% in December 2013

Blame it on shift to RMB deposits.

According to Maybank Kim Eng, HKD deposits grew slower by 0.2% MoM in Dec 2013 as there was migration towards RMB deposits (+5% MoM in Dec 2013). 

The share of RMB deposits accounted for 12% of total deposits in Dec 2013 (9.1% in Dec 2012).

Here's more from Maybank Kim Eng:

We believe this was due to continued RMB appreciation and the increasing acceptance of RMB as a trade settlement currency.

We forecast total RMB deposits in Hong Kong will exceed CNY1.3t by end-Dec 2014 (accounting for 14-15% of total deposits).

Slower loan growth in 4Q13. Total loan growth moderated to 0.9% QoQ in 4Q13, mainly seen in the decline in property lending, syndicated loans and trade finance. Foreign banks have been more disciplined on loan growth in
4Q13 to reduce the requirement for net stable funding.

We forecast loan growth for most Hong Kong-listed banks will remain healthy at 9-11% YoY in 2014.