Hong Kong Monetary Authority unveils list of participating banks in the first phase of RMB trade finance liquidity arrangement.

On February 28, the Hong Kong Monetary Authority announced the list of participating banks in the first phase of the RMB trade finance liquidity arrangement, which took effect immediately. Of the total RMB 100 billion arrangement, approximately RMB 500 billion has been allocated to the participating banks. The allocation of quotas is based on individual banks' expected demand for RMB trade finance services, taking into account factors such as the bank's existing scale of RMB trade finance business. Starting February 28, banks can borrow RMB funds from the HKMA through the allocated quotas to provide RMB trade finance services to companies. The HKMA will closely monitor the implementation of the arrangement, including the operation processes, banks' RMB trade finance activities, actual usage of quotas, and market development needs. Based on the implementation and market demand, the HKMA plans to promote the next phase of quota allocation work in mid-year. The HKMA encourages banks that have not participated in the first phase to continue developing RMB trade finance business to prepare for joining in the later stages.