Hong Kong expands offshore yuan liquidity line for major banks

The Hong Kong Monetary Authority (HKMA) has increased the offshore yuan repurchase line for its designated primary liquidity providers from 20 billion to 22 billion yuan. This expansion, valued at approximately US$3.1 billion, is set for a two-year mandate beginning in October 2026.

The liquidity line is shared among 12 selected banks, consisting of six Chinese institutions—including Bank of China (Hong Kong) and Industrial and Commercial Bank of China (Asia)—and six international banks, including HSBC, Citibank, BNP Paribas, Deutsche Bank, and Standard Chartered Bank (Hong Kong).

According to the HKMA, the selection of these providers was based on three criteria: the ability to lend yuan in the offshore market, the willingness to quote buy and sell prices for yuan-denominated instruments, and a commitment to using Hong Kong as a global hub for these transactions.