Yuan deposits held by local banks last month rose by a fractional 0.15 percent to 246.37 billion yuan (US$34.72 billion), as companies redeemed investments and parked money in yuan-based time deposits, while retail clients continued to trim positions, the central bank said yesterday.
Yuan deposits at domestic banking units stood at 214.4 billion yuan, an increase of 900 million yuan, or a 0.43 percent gain, compared with one month earlier, the bank said.
It said the advance was due to local life insurers redeeming funds from overseas markets and domestic airline and electronics companies wiring yuan income and loans home.
In addition, an international bond fund matured, lending support to the yuan deposit balance, the bank said.
However, the mild gain in yuan deposits did not suggest a recovery in interest in the currency among individual Taiwanese investors, who have consistently lowered holdings this year due to negative views about its value and interest rates, the bank said.
Interest and exchange rates sit atop the list of individual customers’ concerns when they make position adjustments, the bank said.
Local lenders have also cut interest rates on yuan deposits, taking cues from Chinese peers, the bank added.
Renewed trade tensions between the US and China are also unfavorable for the Chinese currency, the bank said.
Yuan deposits at offshore banking units amounted to 31.95 billion yuan, a 1.17 percent drop from one month earlier, it said.
The bank attributed the retreat to local companies wiring money to shore up capital strength for ventures in China.
Yuan deposits declined 1.5 percent in Hong Kong and tumbled 13.2 percent in South Korea, but gained 2.5 percent in Singapore, the bank said.
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