Hong Kong Monetary Authority: Renminbi business funding arrangement limit doubled to 100 billion yuan, and the number of participating banks increased to 40.

On December 29, the Hong Kong Monetary Authority announced that the list of participating banks in the Renminbi business funding arrangement has been expanded to 40 banks starting from the second phase, with the total amount allocated to participating banks increased from 500 billion RMB in the previous stage to 1 trillion RMB. As announced by the Hong Kong Monetary Authority on September 26, the Renminbi business funding arrangement has further expanded the eligible uses of Renminbi funds to include Renminbi capital expenditure and regular operating capital loans starting from the second phase. The banking industry has responded positively to this optimization. The second phase started on December 1. The 40 participating banks can borrow Renminbi funds from the Hong Kong Monetary Authority within the allocated amount to provide Renminbi financing services for local and overseas corporate clients in Hong Kong. The Hong Kong Monetary Authority pointed out that the specific amount allocated to the 40 participating banks is based on their existing Renminbi financing business scale, expected business demand, and the geographical coverage of their overseas bank institutions within the group - all of which reflect the potential for banks to enhance Hong Kong's role in the global offshore Renminbi market. When making allocation decisions, the past usage of allocated amounts by the 24 banks that participated in the previous Renminbi trade financing arrangement and the first phase of the Renminbi business funding arrangement were also taken into consideration. Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, stated that with the support of the People's Bank of China, the Hong Kong Monetary Authority will periodically review the implementation of the new arrangement and consider introducing more participating banks in a timely manner to support wider use of Renminbi in the real economy and promote the continued development of Hong Kong's offshore Renminbi business.