HKMA announces total quota allocated for RMB Business Facility and list of participating banks from Phase 2 onwards
The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Monetary Authority (HKMA) announced today (December 29) the expanded list of 40 participating banks (see Annex) starting from Phase 2 of the RMB Business Facility (RBF), with the total quota allocated to participating banks increased to RMB100 billion, from RMB50 billion in the previous phase.
As announced by the HKMA on September 26 (please refer to the Circular for more details), starting from Phase 2 of the RBF, the scope of eligible Renminbi (RMB) financing activities has been broadened to cover RMB capital expenditure (capex) and working capital term loans. Such enhancement has been well-received by the banking industry.
Starting from Phase 2, which commenced on December 1, the 40 participating banks can apply for RMB funds from the HKMA within their assigned quota under the RBF, to provide RMB financing to local and overseas corporates in support of the real economy.
The specific quota assigned to each of the 40 participating banks is based on the bank’s existing scale of relevant business, expected pipeline, as well as the geographical reach of its overseas intragroup banking entities, all of which reflect its potential in enhancing Hong Kong’s capacity in channelling offshore RMB funds to the global market. When determining the quota allocation, facility usage of the 24 banks that participated in the previous RMB Trade Financing Liquidity Facility and Phase 1 of the RBF has also been taken into account.
The Chief Executive of the HKMA, Mr Eddie Yue,said, "With the support from the People’s Bank of China, the HKMA will continue to closely monitor the progress of the RBF, and will consider adding more participating banks as appropriate, subject to actual facility usage and market demand, with a view to further promoting the use of RMB in the real economy and fostering the growth of offshore RMB business in Hong Kong."
Terms and operation details of the RBF can be found in the aforementioned Circular.
HKMA, Photo source: reference image
Government launches industry consultation on proposed legislative amendments to facilitate digitalisation of business-to-business trade documents
The Government published a consultation paper today (December 29) to gather industry opinions on the proposed legislative amendments to facilitate digitalisation of "Business-to-Business" (B2B) trade documents in Hong Kong.
International trade involves presentment or submission of various trade documents, including "Business-to-Government" (B2G) documents (such as import and export declarations, cargo manifests and various licences or permits) and B2B documents (such as bills of lading and bills of exchange). While the trade may already submit most of the B2G trade documents through the Government Electronic Trading Services and the Trade Single Window, transactions involving certain B2B trade documents still rely largely on paper-based means due to legal requirements and industry practice. As technology advances, the digitalisation of these documents has emerged as a new trend.
As announced in the 2025-26 Budget and the 2025 Policy Address, the Government will make reference to the Model Law on Electronic Transferable Records (MLETR) advocated by the United Nations Commission on International Trade Law and consider legislative amendments to facilitate digitalisation of trade documents. Upon careful consideration by relevant authorities, the consultation paper outlines and seeks industry opinions on the proposed framework to amend the Electronic Transactions Ordinance (Cap. 553) (ETO) and relevant legislation for implementing MLETR provisions, covering various key aspects including the scope of application, assessment of reliability and operational requirements.
The legislative amendments will provide the legal basis for the use of electronic transferable records, which are the electronic version of transferable documents or instruments. Suitable MLETR provisions will be codified into the ETO as far as practicable, with a view to aligning with international standards and promote cross-border interoperability.
A spokesman for the Commerce and Economic Development Bureau (CEDB) said, "The Government endeavours to maintain a business-friendly environment to enhance Hong Kong's competitiveness in international trade. Digitalisation of B2B trade documents may reduce processing time and costs, enhance transparency and integrity, and facilitate international trade. We hope that the legislative proposal would empower the industry to develop technical solutions that suit their actual needs, thereby further enhancing Hong Kong's competitiveness as an international financial, maritime and trade centre."
The consultation paper is available on the CEDB website (www.cedb.gov.hk). Stakeholders are welcome to submit their views to the Government through email (MLETR_consultation@cedb.gov.hk), fax (2147 3065) or post (Division 4, Commerce and Economic Development Bureau, 23/F, West Wing, Central Government Offices, 2 Tim Mei Avenue, Tamar, Hong Kong) on or before March 27, 2026.
