HKMA RMB Business Facility doubles to RMB200 billion in size
The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Monetary Authority (HKMA) announced today (January 26) that the total size of the RMB Business Facility (RBF) will increase from the current RMB100 billion to RMB200 billion, with effect from February 2.
With the strong support of the People's Bank of China (PBoC), the HKMA leveraged the currency swap arrangement with the PBoC to launch the RBF in October 2025, which replaced and enhanced the RMB Trade Financing Liquidity Facility introduced in February 2025. The RBF provides banks with a stable and relatively lower-cost source of Renminbi (RMB) funds, enabling them to offer RMB financing to their corporate clients and support the wider use of RMB in the real economy. The facility channels onshore RMB liquidity into offshore markets in an orderly manner, by adopting a "hub-and-spoke" model with Hong Kong as the hub, further enhancing Hong Kong's unique advantages and role as the global offshore RMB business hub.
The RBF has received overwhelming response from the banking sector since its launch, with the RMB100 billion aggregate quota fully allocated to 40 participating banks. With the implementation of the RBF, eligible end-users have extended from corporate clients of Hong Kong banks to cover also corporate clients of the participating banks' overseas intragroup banking entities. Eligible activities have also been expanded from trade finance to cover capital expenditure and working capital term loans. With the increasing usage of the facility, some participating banks have reached or are approaching the cap of their quotas. The experience so far suggests that the RBF has not only served corporates in Hong Kong but has also successfully channelled offshore RMB funds to regions such as the ASEAN countries, the Middle East, and Europe. Meanwhile, more banks have indicated keen interest in participating in the RBF.
The doubling of the RBF to RMB200 billion provides space to raise quota allocated to participating banks and to onboard more banks. The HKMA welcomes existing and aspiring banks to submit applications and will consider the allocation of quotas in accordance with established practice.
Mr Eddie Yue, Chief Executive of the HKMA, said, "We are grateful to the PBoC for its strong support, which has enabled the continued upgrading and expansion of the RBF. The increase of the facility size to RMB200 billion enables the HKMA to provide timely and sufficient RMB liquidity to meet market development needs, assist banks to enhance their RMB business, support the healthy development of the real economy, and further reinforce Hong Kong's status as an international financial centre and global offshore RMB business hub. We will continue to monitor the implementation of the RBF, including quota utilisation by participating banks, collect market feedback, and enhance the RBF as appropriate. We also welcome PBoC's support for the Hong Kong RMB Clearing Bank to issue negotiable certificates of deposit onshore, thereby expanding its access to liquidity across various maturities. This will strengthen the Clearing Bank's service capabilities and contribute positively to offshore RMB liquidity condition."
The guidance to RBF quota application, terms and conditions, as well as operation procedures can be found on the HKMA website.
HKMA, Photo source: reference image
