China and Hong Kong Expand Offshore Yuan Liquidity and Financial Cooperation

China's central bank and the Hong Kong Monetary Authority have significantly increased the offshore yuan business funding quota for Hong Kong, tripling it to RMB500 billion. This initiative, effective July 10, 2026, also introduces new longer-term funding options and integrates HKMA into the PBoC's RMB repo facility. These measures aim to bolster Hong Kong's role as a key offshore yuan hub and facilitate broader use of the currency in economic activities.