China Backs Hong Kong’s Role in Global Yuan Financing

Hong Kong yuan financing received fresh support after the People’s Bank of China said it will deepen financial market links between the mainland and Hong Kong to facilitate global investment and financing in renminbi.

PBOC Deputy Governor Zou Lan said more than 800 overseas institutional investors have accessed China’s onshore bond market via Bond Connect through Hong Kong, with holdings exceeding RMB810bn (USD113bn), about a quarter of total foreign bond holdings.

Bond trading via the channel reached RMB9.7tr in 2025, accounting for more than 60% of foreign institutions’ trading.

Mainland investors have also used the connect schemes to buy offshore yuan, US dollar and Hong Kong dollar bonds worth nearly RMB1.2tr, reinforcing Hong Kong yuan financing’s global role.