Hong Kong Expands Offshore Renminbi Funding Scheme, Lifts Quota to CNY100bn

Hong Kong offshore renminbi funding capacity has increased after the Hong Kong Monetary Authority doubled the quota of its yuan business facility to CNY100bn (USD14bn) and expanded participation to 40 banks.

Phase two of the scheme, launched on Dec 1, allows banks to draw yuan funding within assigned quotas to lend to local and overseas corporates, with allocations based on existing business pipelines and overseas networks.

HKMA chief executive Eddie Yue said authorities, with support from China’s central bank, will monitor demand and consider adding banks, aiming to promote renminbi use in the real economy and strengthen Hong Kong’s offshore renminbi funding role.