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New Measures to Deepen Financial Cooperation between Hong Kong and the Mainland
14
Jan
Jan
On January 13, the Hong Kong Monetary Authority (HKMA) and the People’s Bank of China (PBoC) unveiled a set of measures to enhance financial market connectivity between Hong Kong and Mainland China, reinforcing Hong Kong’s role as a global offshore RMB hub. These initiatives include the introduction of a RMB Trade Financing Liquidity Facility worth RMB100 billion to provide stable, lower-cost RMB funding for banks in Hong Kong, supporting trade finance and boosting offshore RMB liquidity. Enhancements to Southbound Bond Connect include extended settlement times, multi-currency bond settlements, and expanded access for Mainland investors, which will strengthen Hong Kong’s bond market and the Dim Sum bond market. The HKMA also announced support for offshore RMB repo transactions and the inclusion of Northbound Bond Connect bonds as margin collateral, enhancing capital efficiency and the appeal of RMB assets. Additionally, cross-boundary payment systems between Hong Kong and the Mainland will be linked for real-time small-value transactions by mid-2025, promoting economic exchange. The HKMA also welcomed PBoC’s inclusion of more banks to facilitate account-opening services for Hong Kong residents, providing greater convenience for cross-border financial activities. Resources: https:///www.hkma.gov.hk/eng/news-and-media/press-releases/2025/01/20250113-4/
