PBOC Doubles Yuan Liquidity Facility in Hong Kong to Spur Global Use
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China’s central bank pledged to double the quota of a key funding facility to bolster liquidity in Hong Kong’s offshore yuan market, signaling renewed efforts to internationalize the Chinese currency.
Zou Lan, a deputy governor of the People’s Bank of China, announced the expansion Monday at the Asian Financial Forum in Hong Kong. He said the central bank remains committed to enhancing the city’s role as a global offshore yuan hub.
The RMB Business Facility will see its cap raised to 200 billion yuan ($28.7 billion) from 100 billion yuan. The move tops a broader four-part initiative aimed at deepening financial integration and giving international investors more tools to access and hedge Chinese assets.
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- China’s central bank doubled the RMB Business Facility quota in Hong Kong to 200 billion yuan ($28.7 billion) to enhance offshore yuan liquidity and support internationalization.
- The initiative includes boosting yuan-denominated bond issuance, backing clearing banks with new funding tools, and introducing yuan bond futures.
- Bond Connect northbound trading reached 9.7 trillion yuan in 2025; the PBOC also supports integrating Hong Kong's gold clearing system with the Shanghai Gold Exchange.
- Shanghai Gold Exchange
- The Shanghai Gold Exchange (SGE) is mentioned in the context of supporting the development of Hong Kong's gold clearing system. The SGE signed a cooperation memorandum with the Hong Kong government to strengthen the city's integration with global bullion markets.
- October 2025：
- The RMB Business Facility was launched as a revamped trade-financing tool.
- In 2025：
- China’s Ministry of Finance issued 68 billion yuan of yuan-denominated sovereign bonds in Hong Kong, raising cumulative issuance over 17 years to 434 billion yuan.
- In 2025：
- Northbound trading via the Bond Connect program reached 9.7 trillion yuan.
- Monday, January 27, 2026：
- Zou Lan, deputy governor of the PBOC, announced at the Asian Financial Forum that the RMB Business Facility quota would double to 200 billion yuan and highlighted the support for Hong Kong as a global offshore yuan hub.
- Monday, January 27, 2026：
- A cooperation memorandum between the Shanghai Gold Exchange and the Hong Kong government was signed regarding Hong Kong’s gold clearing system.
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