In a speech at a Hong Kong forum, the People's Bank of China set out a further package of measures to support Hong Kong's role as an international financial center, focused on deeper mainland-Hong Kong market connectivity, broader market development, stronger offshore RMB infrastructure and financial stability. The main near-term steps are to raise the annual net investment quota for Bond Connect Southbound Trading to RMB800 billion from RMB500 billion and to increase the Hong Kong Monetary Authority's RMB business funding arrangement to RMB500 billion from RMB200 billion, with use extended to terms of up to three years. On connectivity and market development, Southbound Bond Connect bonds will be brought into repo support, while the product scope will be widened to HKD bonds and RMB bond-related products and extended to Macau's bond market. The central bank also said it will support more high-quality companies listing and issuing debt in Hong Kong, continue increasing the share of China's foreign exchange reserves allocated to Hong Kong assets, back the launch of 5-year offshore RMB government bond futures, support an upgraded financial trading platform covering bonds, money and foreign exchange, and allow Northbound Bond Connect bonds to be accepted as eligible collateral by Hong Kong Futures Exchange Clearing Corporation and The SEHK Options Clearing House. To reinforce Hong Kong's position as the main offshore RMB hub, the central bank said it will continue regular issuance of central bank bills in Hong Kong, support larger and more varied offshore RMB government bond issuance by the Ministry of Finance, expand participation and use cases for the mainland-Hong Kong fast payment link, and continue policies to widen cross-border RMB settlement. It also said it will support gold market development through clearing, settlement and closer links with the Shanghai Gold Exchange, alongside additional RMB-denominated commodity futures and spot products.
Central Bank of the Republic of China2026-07-07
People's Bank of China outlines Hong Kong support measures including RMB800 billion Southbound Bond Connect quota
In a Hong Kong speech, the People's Bank of China set out measures to deepen support for Hong Kong as an international financial center, including raising the Bond Connect Southbound annual net quota to RMB800 billion from RMB500 billion. It also plans to expand the Hong Kong Monetary Authority's RMB business funding arrangement to RMB500 billion from RMB200 billion, support 5-year offshore RMB government bond futures and broader collateral eligibility, and continue steps to deepen cross-border RMB use and market infrastructure in Hong Kong.