Hong Kong Monetary Authority spokesperson Yu Weiwen: Research on promoting a 7-day offshore RMB liquidity bidding mechanism.

On July 7th, Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, stated that HKMA will study the introduction of a 7-day offshore RMB liquidity tender mechanism to increase support for banks' short-term RMB funding needs; and study the possibility of HKMA issuing offshore RMB short-term debt instruments to further improve the RMB interest rate curve, especially in the short end, to provide the market with more high-quality investment and liquidity management products. Details of these two measures will be announced in due course. Eddie Yue attended the "Hong Kong Fixed Income and Currency Summit and Bond Connect Forum" and told the media that with strong support from the People's Bank of China, the total quota for HKMA's RMB business funding arrangement will increase from the current 200 billion RMB to 500 billion RMB this Friday (10th), more than doubling. At the same time, the arrangement will be extended to 9-month, 2-year, and 3-year terms to meet the funding needs of corporate clients in fund allocation and direct investment, better supporting the wider use of RMB in the real economy. Eddie Yue stated that since the launch of the RMB business funding arrangement last year, the banking industry's response has been very enthusiastic, with the usage continually increasing. In addition to meeting the RMB financing needs of Hong Kong companies, the arrangement has also extended offshore RMB funds to companies in different markets in ASEAN, the Middle East, and Europe in just a few months.