Virtual bank Mox enters deposit race

Virtual bank Mox is offering a six-month interest rate of up to 4.6 percent per annum on deposits of as little as one Hong Kong dollar.

The bank, backed by Standard Chartered Hong Kong, placed full-front-page ads in local newspapers saying it will also pay the interest instantly, and not on maturity date.

If the deposit is prematurely withdrawn, the paid interest will be deducted from the principle.

Local lenders are scrambling for liquidity to prepare for the year-end settlement amid the ongoing high-interest rate environment.

However, Mox's offer still does not match its virtual rival and Tencent (0700)-backed Fusion Bank, which offers 4.7 percent on tenors of six and 12 months. Besides, several traditional banks currently offer around 5 percent for three- to six-month deposits and even up to 5.3 percent on deposits of HK$3 million.

In other news, StanChart Hong Kong became the first foreign bank to conduct yuan cross-border payment and settlement business through the People's Bank of China's cross-border interbank payment system.