HKMA Reports June 2025 Composite Interest Rate Drops to 1.26%, Reflecting Lower Funding Costs for Deposits.

Composite Interest Rate: End of June 2025

The following is issued on behalf of the Hong Kong Monetary Authority:

The Hong Kong Monetary Authority (HKMA) announced today (July 18) the composite interest rate at the end of June 2025 (Note 1).

The composite interest rate, which is a measure of the average cost of funds of banks, decreased by 35 basis points to 1.26 per cent at the end of June 2025, from 1.61 per cent at the end of May 2025 (see Chart 1 in the Annex). The decrease in composite interest rate reflected the decreases in the weighted funding cost for deposits during the month (see Chart 2 in the Annex) (Note 2).

The HKMA publishes the composite interest rate on a monthly basis. Beginning with the end-July 2025 statistics, the monthly publication will only be released in the Monthly Statistical Bulletin on the HKMA website (www.hkma.gov.hk/media/eng/doc/market-data-and-statistics/monthly-statistical-bulletin/T0605.xls).

Note 1: The composite interest rate is a weighted average interest rate of all Hong Kong dollar interest-rate-sensitive liabilities, which include deposits from customers, amounts due to banks, negotiable certificates of deposit and other debt instruments, and all other liabilities that do not involve any formal payment of interest but the values of which are sensitive to interest rate movements (such as Hong Kong dollar non-interest bearing demand deposits) on the books of banks. Data from retail banks, which account for about 90 per cent of the total customers' deposits in the banking sector, are used in the calculation. It should be noted that the composite interest rate represents only average interest expenses. There are various other costs involved in the making of a loan, such as operating costs (e.g. staff and rental expenses), credit cost and hedging cost, which are not covered by the composite interest rate.

Note 2: Since June 2019, the composite interest rate and weighted deposit rate have been calculated based on the new local "Interest rate risk in the banking book" (IRRBB) framework. As such, these figures are not strictly comparable with those of previous months.

Source: AI-found images

Schools and tertiary students invited to enrol in Hong Kong Flower Show student drawing competition

The Hong Kong Flower Show 2026, organised by the Leisure and Cultural Services Department, will be held at Victoria Park from March 20 to 29. The Jockey Club Student Drawing Competition, one of the major activities of the flower show, will be held on March 20. Local primary and secondary school students, as well as full-time tertiary students, are welcome to take part in the competition. Applications are free of charge and will remain open until February 3.

The competition will be conducted in five categories: a Junior Section in Primary School (Primary One to Primary Three); a Senior Section in Primary School (Primary Four to Primary Six); a Junior Section in Secondary School (Form One to Form Three); a Senior Section in Secondary School (Form Four to Form Six); and a Tertiary Institution Section. The competition is scheduled from 9am to noon for primary school categories and the Tertiary Institution Section, and from 1.30pm to 4.30pm for secondary school categories on the day.

The competition will feature students' drawings of floral exhibits or garden displays in the showground with a view to enhancing awareness of conserving plants and the natural environment. Participants may use any form of drawing to illustrate the theme of the competition, "A Fragrant Journey through Hong Kong".

For details of the competition, please call 2926 3060/2302 1762 or visit the flower show webpage www.hkflowershow.hk/en/hkfs/2026/drawing.html. Primary and secondary school students should enrol through their schools, while tertiary students are required to enrol individually. Participating schools and entrants of the Tertiary Institution Section should submit applications online on or before February 3.

The upcoming flower show features "A Fragrant Journey through Hong Kong" as its main theme, with the stock as its theme flower. The Hong Kong Jockey Club Charities Trust is supporting the flower show for the 14th consecutive year and has been its major sponsor since 2014.

The Hong Kong FLower Show, Photo source: FB