China’s central bank raises offshore yuan liquidity access and bond connect quotas to bolster Hong Kong’s role as the primary RMB hub.
The People’s Bank of China increased the Renminbi Business Facility to ¥500bn and the Southbound Bond Connect quota to ¥800bn, up from ¥500bn. The moves aim to deepen Hong Kong’s offshore yuan market and strengthen financial links with the mainland.
The expansion follows prior efforts to internationalize the yuan, including support for yuan-priced commodities and gold clearing trials. Governor Pan Gongsheng noted rising global demand for yuan in investment and reserves but did not signal imminent rate cuts.
The measures are expected to enhance liquidity in Hong Kong’s offshore yuan market, reinforcing its status as the primary hub for RMB transactions outside mainland China.