Core Points - The Hong Kong Monetary Authority (HKMA) is launching the "Renminbi Business Funding Arrangement" starting from October 9, 2025, to replace the "Renminbi Trade Financing Liquidity Arrangement" introduced in February 2025, with multiple optimization measures and expanded eligible funding uses [1][2] - This new arrangement aims to provide enterprises with long-term Renminbi financing for trade, daily operations, and capital expenditures, thereby supporting the real economy's use of Renminbi [1] - The total quota for the "Renminbi Business Funding Arrangement" is set at 100 billion Renminbi, to be implemented in three phases [2] Industry Insights - The demand for Renminbi as a financing currency has significantly increased, as evidenced by the loan-to-deposit ratio for Renminbi in the banking sector rising from approximately 20% in September 2022 to over 90% in June 2025, indicating a growing need for long-term Renminbi loans among enterprises [1] - The HKMA's previous initiatives, including the introduction of the Renminbi Liquidity Facility in June 2012 and the Renminbi Trade Financing Liquidity Arrangement in February 2025, have been responses to the evolving offshore Renminbi market and its liquidity needs [2] - The new arrangement is expected to enhance Hong Kong's position as a leading global offshore Renminbi business hub by broadening the scope of eligible funding uses compared to the previous arrangement [2] Future Outlook - As the use of Renminbi in cross-border investments becomes more convenient, interest from foreign investors in Renminbi assets is anticipated to grow, promoting the internationalization of Renminbi asset allocation [3] - Strengthening regulatory coordination and cross-border cooperation is essential, including enhancing the interconnectivity of cross-border payment systems, improving financial infrastructure, and developing cross-border settlement mechanisms [3]

Core Viewpoint - The Hong Kong Monetary Authority (HKMA) is launching the "Renminbi Business Funding Arrangement" starting from October 9, 2025, to replace the previously introduced "Renminbi Trade Financing Liquidity Arrangement" and aims to support the use of Renminbi in the real economy [1][2]. Group 1 - The "Renminbi Business Funding Arrangement" has a total quota of 100 billion Renminbi and will be implemented in three phases [2]. - The new arrangement responds to the growing demand in the offshore Renminbi market and is expected to further enhance Hong Kong's position as a global offshore Renminbi business hub [2]. - The HKMA noted that the loan-to-deposit ratio for Renminbi in the banking sector increased from approximately 20% in September 2022 to over 90% by June 2025, indicating a significant rise in demand for long-term Renminbi loans [1]. Group 2 - The arrangement aims to provide enterprises with long-term Renminbi financing for trade, daily operations, and capital expenditures, thereby supporting the real economy [1]. - The HKMA's previous measures, including the introduction of the Renminbi liquidity arrangement in June 2012 and the trade financing liquidity arrangement in February 2025, were designed to address short-term liquidity issues in the offshore Renminbi market [2]. - The expansion of eligible funding uses under the new arrangement is expected to stabilize long-term funding sources for the offshore market, which has been limited by a liquidity pool of around 1 trillion Renminbi [2]. Group 3 - As the use of Renminbi in cross-border investments becomes more convenient, interest from foreign investors in Renminbi assets is expected to increase, promoting the internationalization of Renminbi assets [3]. - Strengthening regulatory coordination and cross-border cooperation is essential, including enhancing the interconnectivity of cross-border payment systems and improving financial infrastructure [3].

Core Points - The Hong Kong Monetary Authority (HKMA) has officially implemented the "Renminbi Business Funding Arrangement" as of October 9, 2023, aimed at enhancing the use of Renminbi in offshore markets [1][3] - The arrangement replaces the previous "Renminbi Trade Financing Liquidity Arrangement" and is being rolled out in three phases to ensure sufficient liquidity for expanding offshore Renminbi business [3] Company Insights - Bank of China (Hong Kong) has initiated the first batch of funding arrangements, providing Renminbi trade financing to multiple enterprises in Hong Kong, including support for a mainland company operating in Indonesia and a local company in Cambodia [1][3] - The bank's Vice President, Wang Huabin, reported that the volume of Renminbi financing business increased by over 30% year-on-year in the first three quarters of 2025, indicating a significant rise in demand for Renminbi in cross-border operations [3] Industry Implications - The new funding arrangement simplifies transaction processes and offers longer financing term options for enterprises, thereby injecting new momentum into the offshore Renminbi market [3] - The initiative is expected to benefit more enterprises "going global" by allowing participating banks to provide Renminbi trade financing services through their overseas branches [3]

Core Viewpoint - The Hong Kong Monetary Authority (HKMA) will launch a new "Renminbi Business Funding Arrangement" on October 9, aimed at expanding the eligible uses of funds and optimizing Renminbi liquidity arrangements to enhance offshore Renminbi business and its use in the real economy [1][2] Group 1: New Funding Arrangement - The new funding arrangement will be implemented in three phases, starting with a lower interest rate for participating banks using Renminbi business funding, calculated based on the Shanghai Interbank Offered Rate, eliminating the previous 25 basis points premium [1] - Participating banks will be allowed to provide Renminbi trade financing services to corporate clients through overseas bank institutions within the same group, enhancing Hong Kong's influence in the offshore market [1] Group 2: Phased Implementation - The second phase, starting December 1, will include specific Renminbi capital expenditure and operating loan arrangements, significantly increasing the scenarios for participating banks and overseas institutions to utilize the funding arrangement [1] - The third phase, beginning February 2 next year, will allow participating banks to change collateral during repurchase transactions as needed, with automated management and settlement processes to ensure liquidity in the collateral market [1] Group 3: Optimization of Liquidity Arrangements - The HKMA will also optimize Renminbi liquidity arrangements by reallocating daytime and overnight Renminbi funding quotas to meet the growing demand for cross-border Renminbi payment settlements [2] - The introduction of two-week and one-month term repurchase agreements for T+1 settlements will provide banks with greater flexibility in managing funds [2] Group 4: Market Demand for Renminbi - There has been a significant increase in demand for Renminbi as a financing currency, with the loan-to-deposit ratio for Renminbi loans in the banking sector rising from approximately 20% in September 2022 to over 90% in June this year [2] - There is also a growing demand from enterprises for longer-term Renminbi loans [2]

Core Points - The Hong Kong Monetary Authority (HKMA) is launching a new "Renminbi Business Funding Arrangement" starting October 9, replacing the existing "Renminbi Trade Financing Liquidity Arrangement" [1][3] - The new arrangement will be implemented in three phases, with the first phase allowing banks to use the new funding arrangement at lower interest rates [1][3] - The HKMA has increased the daytime Renminbi funding limit from 20 billion to 30 billion, while reducing the overnight limit from 20 billion to 10 billion [3] Group 1 - The new arrangement aims to better meet the increasing demand for cross-border Renminbi payment settlements [3] - The HKMA's measures are designed to ensure sufficient liquidity in the market to expand offshore Renminbi business [3][4] - The introduction of two-week and one-month term repurchase agreements will provide banks with greater flexibility in managing funds [3] Group 2 - The HKMA's president emphasized the importance of these measures in promoting the use of offshore Renminbi in the real economy [3] - The Hong Kong Banking Association supports the expansion of offshore Renminbi business and encourages close communication with regulatory bodies [3][4] - The optimization measures are expected to enhance the strategic advantages for enterprises closely linked to the mainland market, aiding in managing financing costs [4]

Core Viewpoint - The Hong Kong Monetary Authority (HKMA) announced the optimization of the Renminbi liquidity arrangement to better meet the liquidity demands arising from the growth of offshore Renminbi business, effective from October 9, 2025 [1][3]. Summary by Sections Optimization Measures - The HKMA will replace the existing Renminbi Trade Financing Liquidity Arrangement with the "Renminbi Business Liquidity Arrangement," maintaining a total liquidity amount of 40 billion Renminbi, redistributing it to 30 billion Renminbi for daytime and 10 billion Renminbi for overnight liquidity [3]. - New T+1 repurchase agreements with two-week and one-month terms will be introduced, alongside existing one-day and one-week options, with rates referencing current market rates [3]. Implementation Phases - **Phase 1 (Effective October 9, 2025)**: Banks will access the new arrangement at lower rates, based on the Shanghai Interbank Offered Rate, eliminating a previous 25 basis point premium. The arrangement will also allow banks to provide Renminbi trade financing through overseas branches [4]. - **Phase 2 (Effective December 1, 2025)**: Specific Renminbi capital expenditure and working capital loans will be included in the eligible business scope, enhancing predictability and stability in Renminbi funding costs for banks [5]. - **Phase 3 (Effective February 2, 2026)**: Introduction of a third-party repurchase service by the Central Moneymarkets Unit (CMU), allowing banks to change collateral during the repurchase period, transitioning to a more automated operation [5]. Market Context - The HKMA noted significant growth in offshore Renminbi business, with the loan-to-deposit ratio for Renminbi in the banking sector rising from approximately 20% in September 2022 to over 90% by June 2025, indicating increasing demand for long-term Renminbi loans [7]. - The HKMA's measures aim to ensure sufficient liquidity in the market to support the expansion of offshore Renminbi business and promote its use in the real economy [8].

Core Viewpoint - The Hong Kong Monetary Authority (HKMA) is launching a new "Renminbi Business Funding Arrangement" on October 9, replacing the existing "Renminbi Trade Finance Liquidity Facility" and implementing several optimization measures to expand the eligible uses of funds [1][2]. Group 1 - The first phase, starting on October 9, allows participating banks to use the new arrangement at a lower interest rate based on the Shanghai Interbank Offered Rate, eliminating the previous 25 basis points premium [1]. - The new arrangement will also enable participating banks to provide Renminbi trade financing services to corporate clients through overseas banking institutions within the same group, enhancing Hong Kong's influence in the offshore market [1]. Group 2 - The second phase, effective December 1, will include specific Renminbi capital expenditure and operating fund term loans as eligible business activities [2]. - The third phase, commencing on February 2, 2026, will introduce a third-party repurchase service arrangement under the Central Moneymarkets Unit (CMU), allowing participating banks to change collateral during the repurchase transaction period, transitioning from manual to automated operations [2].

香港金管局表示，优化现有的人民币流动资金安排，更大力度地推动离岸人民币在实体经济的使用。 （文章来源：新华财经） 新华财经北京9月26日电香港金管局表示，自10月9日起推出"人民币业务资金安排"，取代现有"人民币 贸易融资流动资金安排"。 第一阶段参加行可以更低利率使用人民币业务资金安排，计算基准是SHIBOR上海银行间同业拆放利 率，免去此前附加的25基点溢价。第二阶段自12月1日起，特定人民币资本支出及营运资金定期贷款将 纳入合资格业务范围。第三阶段自2026年2月2日起，将引入CMU的第三方回购服务安排。 ...

Core Viewpoint - The Hong Kong Monetary Authority (HKMA) is launching a new Renminbi (RMB) Business Funding Arrangement starting October 9, 2023, to replace the existing RMB Trade Finance Liquidity Facility, with multiple optimization measures and expanded eligible funding uses [1][4]. Group 1: RMB Business Funding Arrangement - The new arrangement will be implemented in three phases, with the first phase allowing participating banks to use the RMB Business Funding Arrangement at lower interest rates, based on the Shanghai Interbank Offered Rate, eliminating the previous 25 basis points premium [1][4]. - The second phase, starting December 1, 2023, will include specific RMB capital expenditures (Capex) and working capital loans as eligible business areas, significantly increasing the application scenarios for participating banks and their overseas institutions [5]. - The third phase, set for February 2, 2026, will introduce a third-party repurchase service arrangement, allowing participating banks to change collateral during the repurchase transaction period, transitioning from manual operations to a more automated process [5]. Group 2: Optimization of RMB Liquidity Arrangement - The HKMA is optimizing the existing RMB liquidity arrangement, which was initially launched in June 2012, to address potential short-term liquidity needs in the offshore RMB market [7]. - Effective October 9, 2023, the HKMA will adjust the daytime and overnight RMB liquidity limits, increasing the daytime limit to 30 billion RMB and reducing the overnight limit to 10 billion RMB [7]. - Additionally, the HKMA will introduce two-week and one-month term repurchase agreements to provide banks with greater flexibility in managing their funds [7].

Core Viewpoint - The Hong Kong government aims to establish an internationally leading bond market, as outlined in the Chief Executive's Policy Address, with plans to enhance the city's bond trading activities and infrastructure [1] Group 1: Bond Market Development - The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) will present a roadmap at the inaugural "Hong Kong Fixed Income and Currency Forum" on September 25 [1] - The roadmap includes plans to unify trading platforms and strengthen bond market trading activities, leveraging Hong Kong's mature bond settlement and clearing capabilities [1] Group 2: Enhancing Hong Kong's Bond Center Status - The government is exploring various avenues to elevate Hong Kong's status as a bond center, including encouraging bond issuance in Hong Kong and facilitating secondary market transactions such as repos [1] - Initiatives to promote the internationalization of the Renminbi (RMB) and attract financial talent are also part of the roadmap [1] Group 3: RMB Business Funding Arrangements - The HKMA plans to utilize its currency swap agreement with the People's Bank of China to establish a new "RMB Business Funding Arrangement" to support the real economy's use of RMB [1] - The HKMA holds a quota of 800 billion RMB, with 100 billion RMB earmarked for "RMB trade financing liquidity arrangements," aiming to meet the increasing demand from enterprises [1] - The anticipated demand for the "RMB Business Funding Arrangement" is expected to extend beyond import-export companies to include businesses planning to expand internationally [1]