appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

Enoch Yiu

China’s central bank will support Hong Kong’s monetary authority to double the amount of yuan liquidity available to local banks, helping them increase yuan lending and enhancing the city’s role as an international offshore centre for the mainland currency.
People’s Bank of China (PBOC) deputy governor Zou Lan said at the Asian Financial Forum (AFF) in Hong Kong on Monday that the central bank would provide more funding to allow the Hong Kong Monetary Authority (HKMA) to double the yuan liquidity facility to 200 billion yuan (US$28.68 billion) from next week.
In addition, the country would issue more yuan sovereign bonds and explore the launch of government bond futures in Hong Kong to meet international investors’ demand for the currency, he added.
“Hong Kong has been the world’s largest and most influential offshore yuan trading centre,” Zou said in a speech at the opening of the AFF. “The PBOC considers Hong Kong important and is firmly committed to continuing to roll out different measures to increase yuan liquidity.”
Launched in October, the facility, officially known as the RMB Business Facility, provides banks with cheap and stable yuan funding so that they can offer yuan loans to global customers.
The expansion was much needed, as the HKMA had already allocated 100 billion yuan to 40 banks in December, it said in a statement. The doubling would allow existing banks to get more liquidity and support the addition of more banks to the scheme, it added.
The HKMA said the new quota would be effective from February 2.
“The increase of the facility size to 200 billion yuan enables the HKMA to provide timely and sufficient yuan liquidity to meet market-development needs and assist banks to enhance their yuan business,” said HKMA chief executive Eddie Yue Wai-man.

According to the HKMA, banks had reported that the facility not only served companies in Hong Kong but also successfully channelled offshore yuan funds to regions such as Southeast Asia, the Middle East and Europe.
Yue said the expansion of the facility “would reinforce Hong Kong’s status as an international financial centre and global offshore yuan business hub”.
PBOC’s Zou also said the central bank would support Hong Kong’s yuan clearing bank, Bank of China (Hong Kong), to issue negotiable certificates of deposit onshore, thereby expanding its access to liquidity across various maturities.
“This will strengthen the clearing bank’s service capabilities and contribute positively to offshore yuan liquidity conditions,” Yue said.
Frank Fang, head of commercial banking for Hong Kong and Macau at HSBC, said the doubling of the yuan facility was “a key step that promotes the wider use of the yuan in the real economy”.
“Clients increasingly view yuan financing not only as a tool for better cost management in the current interest rate environment, but also as a strategic option to support their global operations,” he said in a statement.
“This is particularly evident among Chinese companies pursuing international expansion. This enhancement further elevates the ability of banks to support corporates in Hong Kong and beyond more effectively, reinforcing the city’s position as a leading offshore yuan centre.”
As of December, the yuan was the second most-used currency in global trade finance, with an 8.3 per cent share, second only to the US dollar at 79.53 per cent, according to Swift, the banking industry’s messaging network system. The yuan’s share was 6 per cent in December 2024 and only 2.1 per cent four years ago.
In terms of all types of payments, the yuan ranked sixth worldwide in December, with a share of 2.73 per cent, behind the US dollar (50.49 per cent), euro (21.9 per cent), British pound (6.73 per cent), Canadian dollar (3.44 per cent) and Japanese yen (3.42 per cent).
Hong Kong was the largest offshore yuan market worldwide as of December, with 74.55 per cent of offshore yuan payments, followed by the UK at 7.04 per cent and Singapore at 4.39 per cent, according to Swift.


How Hong Kong’s new 5-year plan courts global capital with an eye on market dominance

Exchange Fund weighs bigger gold holdings to support Hong Kong’s trading hub plan

Hong Kong’s 5-year plan, policy continuity offer investors more stability, experts say

After US rate hikes, HKMA says Hong Kong dollar could come under pressure

Hong Kong Monetary Authority (HKMA)

China’s central bank to support HKMA in doubling of yuan liquidity for Hong Kong lenders

Zou Lan, deputy governor of the People’s Bank of China, speaks during the 19th Asian Financial Forum at Hong Kong Convention and Exhibition Centre in Wan Chai on January 26, 2026. Photo: Eugene Lee

Chief Executive John Lee Ka-chiu delivers opening remarks at the 19th Asian Financial Forum at Hong Kong Convention and Exhibition Centre in Wan Chai on January 26, 2026. Photo: Eugene Lee

HKMA unveils 20-point road map to modernise Hong Kong’s trade finance ecosystem

It is important to streamline documentation and data exchange with mainland China and Asean, says Howard Lee. Photo: Edmond So

Trade is Hong Kong’s second-largest industry after finance, contributing 15 per cent of gross domestic product. Photo: Jelly Tse

Project CargoX optimises cargo and trade data connectivity, according to HKMA. Photo: Jelly Tse

HKMA in talks with SFC, Insurance Authority to promote fintech over next 5 years

Hong Kong Monetary Authority chief executive  Eddie Yue Wai-man. Photo: SCMP

The Hong Kong Monetary Authority office at Two International Finance Centre in Central. Photo: Jelly Tse

Banks and fund houses are being encouraged to use tokenised deposits in tokenised money market fund transactions, according to the Hong Kong Monetary Authority. Photo: Shutterstock

Hong Kong bond markets, yuan issuance to expand in 2026 under HKMA, SFC road map

The Hong Kong Monetary Authority logo at its IFC Two headquarters. Photo: Jonathan Wong

As part of efforts to promote the local bond market, the Hong Kong Monetary Authority and the Securities and Futures Commission launched a blueprint to expand yuan-linked products. Photo: Shutterstock 

HKEX invests in HKMA’s CMU Omniclear, strengthening city’s financial market infrastructure

The HKEX will invest up to HK$455 million to acquire a 20 per cent stake in the HKMA’s CMU OmniClear Holdings. Photo: Karma Lo

HKMA chief executive Eddie Yue said the partnership establishes a strong foundation for transforming CMU into a multi-asset-class platform. Photo: Karma Lo

Hong Kong to expand access to US$14 billion yuan facility to promote use, reduce cost

A bank employee uses a machine to count 100 yuan banknotes in Hong Kong. Photo: Bloomberg

Eddie Yue Wai-man, chief executive of the Hong Kong Monetary Authority, speaks at the Treasury Markets Summit in Hong Kong on Friday. Photo: Jonathan Wong

The logo of the Hong Kong Monetary Authority seen at its offices in IFC Two. Photo: Jonathan Wong

Business

News

Hong Kong

Hong Kong Economy

Banking & Finance

PBOC to increase yuan facility to US$28.68 billion and issue more sovereign yuan bonds to enhance city’s role as yuan hub, official says


PBOC to increase yuan facility to US$28.68 billion and issue more sovereign yuan bonds to enhance city’s role as yuan hub, official says.


China’s central bank to support HKMA in doubling of yuan liquidity for Hong Kong lenders

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}PBOC to increase yuan facility to US$28.68 billion and issue more sovereign yuan bonds to enhance city’s role as yuan hub, official says

PBOC to increase yuan facility to US$28.68 billion and issue more sovereign yuan bonds to enhance city’s role as yuan hub, official says