The Hong Kong Monetary Authority announced that it will increase the total size of the RMB Business Facility to RMB200 billion from RMB100 billion, effective 2 February, expanding the availability of Renminbi liquidity for banks to provide RMB financing. The facility, launched in October 2025 using the currency swap arrangement with the People’s Bank of China, replaced and enhanced the RMB Trade Financing Liquidity Facility introduced in February 2025 and is designed to provide a stable, relatively lower-cost RMB funding source for banks. Since launch, the RMB100 billion aggregate quota has been fully allocated to 40 participating banks, while eligible end-users have been extended to include corporate clients of participating banks’ overseas intragroup banking entities and eligible activities broadened from trade finance to include capital expenditure and working capital term loans. With some banks reaching or approaching their quota caps and more banks expressing interest, the HKMA cited usage across regions including ASEAN countries, the Middle East and Europe. Doubling the facility is intended to support higher quotas for participating banks and enable additional banks to join, with the HKMA inviting applications and allocating quotas in line with established practice. The HKMA also said it will monitor quota utilisation and market feedback and enhance the facility as appropriate, and noted support for the Hong Kong RMB Clearing Bank to issue negotiable certificates of deposit onshore to expand access to liquidity across different maturities.
Hong Kong Monetary Authority 2026-01-26
Hong Kong Monetary Authority doubles RMB Business Facility to RMB200 billion from 2 February
The Hong Kong Monetary Authority will double the RMB Business Facility to RMB200 billion from RMB100 billion, effective 2 February, to expand Renminbi liquidity for banks. This expansion aims to support higher quotas for participating banks, enable additional banks to join, and enhance access to liquidity across different maturities.