The city will also vet a license application for a new electronic fixed income and currency trading system

Published: 5:17pm, 7 Jul 2026

Hong Kong Monetary Authority (HKMA) would increase the quota of its RMB Business Facility for banks by 1.5 times to 500 billion yuan (US$73.6 billion) from this Friday, according to its chief executive Eddie Yue Wai-man.

Yue said the increase was much-needed, as the current 200 billion yuan quota had been used up, and many banks said their international clients in 12 jurisdictions wanted yuan loans.

“The expansion of the facilities would allow more banks to tap the yuan to lend to their clients in Hong Kong, Asean, the Middle East and Europe. This is very important in promoting the international usage of the yuan in real economy,” he said at a media briefing on Tuesday.

The facility’s tenure would be extended to two to three years from its current maximum of one year, also taking effect from this Friday. The facility, launched in February 2025, initially had a 100 billion yuan quota for 40 banks, which was doubled to 200 billion yuan starting in February this year, with officials aiming to provide cheap and stable yuan for banks.

The expansion of the facility is among 11 measures announced by the HKMA and the Securities and Futures Commission (SFC) on Tuesday to promote the city’s bond and currency market.

Another key measure is a new electronic FIC trading platform jointly developed by China Foreign Exchange Trade System (CFETS) and bourse operator Hong Kong Exchanges and Clearing (HKEX), which is applying for a licence from the SFC, according to a statement made by SFC CEO Julia Leung Fung-yee at the same briefing.