Hong Kong offshore yuan deposits fall during January

The value of offshore yuan deposits in Hong Kong decreased for the second consecutive month in January according to data released by the Hong Kong Monetary Authority, the Wall Street Journal reported. January renminbi deposits in the city amounted to RMB575.96 billion (US$91.5 billion), a 2.1% drop from RMB588.53 billion (US$93.4 billion) in December. The fall in deposits is a sign of waning investor interest; analysts expect the trend to continue through March due to slow appreciation and lack of offshore volatility. Daily offshore trading in the yuan peaked in mid-2011 at US$1.5 billion per day, compared with an estimated US$1 billion per day now. “Investors aren’t taking risks as easily as they were in mid-2011,” say Justin Chan, deputy head of global markets at HSBC.