Chinese renminbi-denominated deposits in Taiwanese banks rose a mere 0.1% month-on-month at the end of July. Market analysts say this shows that investors are taking a cautious approach.
According to Taiwan’s central bank, as of the end of July, the balance of renminbi-denominated deposits in Taiwan’s domestic banking units and offshore banking units totaled 293.03 billion yuan (US$47.64 billion). That’s up 2.88 billion yuan or 0.1% from a month earlier. The amount was lower than analysts’ earlier forecasts of 300 billion yuan.
The growth of 0.1% month-on-month was the slowest increase since domestic banking units of Taiwanese banks were allowed to process renminbi-denominated transactions in February 2013.
Analysts said although the Chinese currency has appreciated against the US dollar recently, investors appear to have limited interest in raising their Chinese currency holdings in Taiwan. They are still keeping a close way on how far the Chinese authorities will allow the currency to rise.