The new policies are strengthening the city’s position as a gateway for foreign investors looking at the country
Published Tue, Jul 7, 2026 · 12:47 PM
CHINA’S central bank announced a slew of measures aimed at expanding an investment channel between Hong Kong’s financial market and the mainland, as well as enhancing the city’s role in promoting overseas use of the renminbi.
The total size of the so-called RMB Business Facility will more than double to 500 billion yuan (US$74 billion), giving local banks greater access to the Chinese currency in the form of loans from the Hong Kong Monetary Authority, according to Pan Gongsheng, governor of the People’s Bank of China (PBOC).
Regulators are also boosting the quota of another programme, called the Southbound Bond Connect, which allows mainland institutional investors to buy offshore bonds through Hong Kong. Its annual limit will increase to 800 billion yuan from 500 billion yuan, Pan said in a speech on Tuesday (Jul 7) at the Hong Kong FIC & Bond Connect Summit.
The new policies are strengthening Hong Kong’s position as a gateway for foreign investors looking at China. They are also in line with Beijing’s campaign to build a more comprehensive cross-border trading and financial infrastructure to boost the renminbi’s international appeal.
Pan highlighted Hong Kong’s status as the biggest offshore renminbi market in the world, and forecast the city will play a bigger role in promoting the globalisation of the Chinese currency.
“As the global monetary system accelerates its evolution towards a multi-polar one, international demand for renminbi is extending beyond trade settlement to broader areas including investment, financing, pricing and reserves,” he said. “Hong Kong’s role as the global offshore renminbi hub will certainly be enhanced.”
The governor also said that the PBOC will support the launch of more commodity products priced in renminbi, as Hong Kong began a trial operation of a new gold clearing system backed by several major banks.
China’s central bank will keep increasing the allocation of national foreign reserves to Hong Kong, he added.
Pan offered relatively sparse remarks on China’s monetary policy, saying the central bank will maintain its supportive stance.
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