The city will also vet a license application for a new electronic fixed income and currency trading system
Hong Kongwill substantially increase its yuan facilitiesfor banks from this Friday, while the city will also introduce a new electronic fixed income and currency (FIC) trading system as part of its latest efforts to promote yuan trading, according to local market regulators on Tuesday.
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.
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.