Hong Kong to Raise RMB Lending Quota for Banks to 500 Billion Yuan From July 10

Hong Kong will raise the quota of its RMB Business Facility for banks by 1.5 times to 500 billion yuan from Friday, 10 July 2026, the Hong Kong Monetary Authority said. The current 200 billion yuan quota has been fully used. The facility’s maximum tenure will also lengthen to two to three years from the present one-year limit, effective the same date.

South China Morning Post reported that the changes respond to demand from international clients in 12 jurisdictions seeking yuan loans. Eddie Yue Wai-man, chief executive of the Hong Kong Monetary Authority, said at a media briefing on Tuesday that the expansion would let more banks lend yuan to clients in Hong Kong, ASEAN, the Middle East and Europe.

The facility began in February 2025 with an initial 100 billion yuan quota for 40 banks and was doubled to 200 billion yuan in February 2026. The latest increase forms part of 11 measures announced Tuesday by the Hong Kong Monetary Authority and the Securities and Futures Commission to support the city’s bond and currency markets.

A new electronic fixed income and currency trading platform developed jointly by China Foreign Exchange Trade System and Hong Kong Exchanges and Clearing is applying for a licence from the Securities and Futures Commission, Julia Leung Fung-yee, chief executive of the commission, said at the same briefing.