FINANCE

Hong Kong to Launch Upgraded $14 Billion Yuan Funding Scheme

Published: Sep. 26, 2025 6:44 p.m. GMT+8

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The Hong Kong Monetary Authority (HKMA) will launch a new yuan funding scheme on Oct. 9, an upgraded 100 billion yuan ($14 billion) facility aimed at lowering funding costs and expanding the use of the Chinese currency for corporate needs.

The new scheme will replace the RMB Trade Financing Liquidity Facility, which was introduced in February, and will be rolled out in three phases, HKMA Chief Executive Eddie Yue said in a Friday statement.

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HKMA will launch a 100 billion yuan funding scheme on Oct. 9 to lower costs and expand yuan use by companies, replacing the earlier facility.
The upgrade will roll out in three phases, offering cheaper rates, longer tenors, broader loan scope, and automated repo service for banks.
Yuan loan-to-deposit ratio in Hong Kong’s banks rose from ~20% (Sep 2022) to over 90% (June 2025), reflecting strong corporate demand.

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