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Leading financial institutions from Southeast Asia and the Middle East—including OCBC, Bangkok Bank, First Abu Dhabi Bank, and Qatar National Bank—have joined Hong Kong’s expanded yuan liquidity program, highlighting the city’s efforts to strengthen its position as a global offshore renminbi (RMB) hub.
The Hong Kong Monetary Authority (HKMA) announced on Monday that it has doubled the quota allocated to banks under the Renminbi Business Facility to 100 billion yuan (US$14 billion) effective December 1, the maximum limit permitted under the scheme.
The number of participating banks increased from 25 to 40, with quotas allocated based on each institution’s client profile and demand, the HKMA stated.
This expansion includes the first-time involvement of Middle East banks, with First Abu Dhabi Bank—the largest bank in the United Arab Emirates—joining the scheme. Additionally, more Southeast Asian lenders are participating, such as OCBC and its Hong Kong subsidiary, Thailand’s largest bank Bangkok Bank, along with ING Bank, Taiwan’s Bank SinoPac, and Hong Kong-based Dah Sing Bank and CMB Wing Lung Bank.
Eddie Yue Wai-man, HKMA Chief Executive, commented, “With support from the People’s Bank of China, the HKMA will continue to monitor the progress of the RMB Business Facility. We may include more banks based on demand, aiming to promote yuan use in the real economy and foster offshore yuan growth in Hong Kong.”
Launched in February, the facility initially provided 50 billion yuan in quotas to 24 major lenders including HSBC, Standard Chartered, BNP Paribas, and Deutsche Bank, to support stable yuan funding for trade finance. In September, the HKMA replaced the original trade finance liquidity facility with the RMB Business Facility, maintaining the same quota but expanding its scope.
Improvements introduced in October reduced funding costs to Shanghai levels and extended loan tenures to one year, with options for one, three, and six months. From December 1, the second phase of upgrades allows banks to use yuan funds for direct investments or general working capital for clients both in Hong Kong and abroad. Yue highlighted that this upgrade is significant, as it enables yuan financing to directly support the real economy.
The HKMA stated that this expansion enhances Hong Kong’s capacity to channel offshore RMB funds globally. Major banks such as HSBC, Standard Chartered, and Bank of China (Hong Kong) have already utilized the new quota.
HSBC reported providing a 1.4 billion yuan working capital loan to a subsidiary of a Chinese-listed company with international operations, marking one of its first offshore yuan loans. Frank Fang, HSBC’s Head of Commercial Banking for Hong Kong and Macau, said, “Participation in the RMB Business Facility offers greater flexibility to finance corporate growth and investments. It also strengthens Hong Kong’s ability to support mainland Chinese enterprises’ global expansion, reinforcing the city’s role as a leading offshore RMB financing hub.”
Standard Chartered has issued yuan loans to companies including Sany Heavy Equipment, Lao Feng Xiang jewelry, and Hengan International. BOCHK facilitated loans for textile firm Texhong International and Henderson Land Group, while Bank of China extended over 1 billion yuan in loans to overseas clients.