Hong Kong Monetary Authority doubles RMB Business Facility quota to RMB100 billion and expands participating banks to 40

The Hong Kong Monetary Authority (HKMA) has increased the total quota allocated to participating banks under the RMB Business Facility (RBF) to RMB100 billion, up from RMB50 billion in the previous phase, and confirmed an expanded roster of 40 participating banks from Phase 2 onwards. Phase 2, which began on 1 December, allows participating banks to apply for RMB funds from the HKMA within assigned quotas to provide RMB financing to local and overseas corporates. The HKMA also reiterated that eligible RMB financing activities have been broadened in Phase 2 to include RMB capital expenditure and working capital term loans. Quota allocations reflect banks’ existing scale of relevant business, expected pipeline and the geographical reach of overseas intragroup banking entities, with prior facility usage by banks participating in the earlier RMB Trade Financing Liquidity Facility and Phase 1 of the RBF also taken into account. The HKMA will monitor RBF progress and may add further participating banks subject to facility usage and market demand.