Hong Kong Yuan Deposits Post Record Monthly Drop in December

Yuan deposits in Hong Kong posted their biggest monthly drop on record as the currency’s steepest annual depreciation in more than two decades undercut its appeal for savers.

Savings in the Chinese currency fell 12.9 percent on the month to 546.7 billion yuan ($79.4 billion) in December, the biggest drop since local banks started taking such funds in 2004, Hong Kong Monetary Authority data showed Friday. The onshore exchange rate weakened 6.5 percent last year as capital outflows picked up amid higher U.S. interest rates, while the offshore rate fell 5.8 percent.