Hong Kong to expand access to US$14 billion yuan facility to promote use, reduce cost
New RMB Business Facility aims to promote trade finance and direct investment as city builds offshore-yuan capabilities, HKMA chief says
Hong Kong’s monetary authority will launch a Renminbi (RMB) Business Facility from next month to support banks in offering yuan loans to companies, a move that aims to promote trade finance and direct investment as the city strengthens its role as an offshore yuan hub.
“The potential usage of the RMB Business Facility by participating banks in the facility is significantly broader than that of the RMB trade-finance liquidity facility, hence further strengthening Hong Kong’s leading position as the global offshore yuan business hub,” Yue told hundreds of bankers at the Treasury Markets Summit on Friday.
He said the facility would encourage more companies in mainland China and other overseas markets to use Hong Kong as a base to manage their corporate treasury activities and their regional business.
Under this measure, all overseas institutional investors putting money into the onshore bond market – including those trading via the bond connect scheme – would be allowed to participate in the onshore repo business and to remit the yuan obtained for offshore use.