Hong Kong and China announce 11 measures to boost financial cooperation

Hong Kong's monetary authority chief Eddie Yue responded positively to a series of financial initiatives unveiled by China's central bank governor Pan Gongsheng at the Hong Kong Fixed Income and Currency Bond Connect Summit. The announcements represent collaborative efforts between Hong Kong's regulatory bodies and mainland Chinese authorities to deepen financial integration.

The 11 measures are split into two main categories. Six are designed to strengthen Hong Kong's fixed income and currency markets while improving connectivity with mainland financial systems. The remaining five target growth in Hong Kong's offshore renminbi business.

Bond Connect Enhancements

Southbound Bond Connect will see significant upgrades, including:

• Increasing the annual investment quota from 500 billion renminbi to 800 billion renminbi
• Enabling bond repurchase transactions using Southbound Bond Connect securities as collateral
• Expanding eligible products to include those with Hong Kong dollar and renminbi bonds
• Creating connections to Macau's bond market through existing financial infrastructure links
• Strengthening market maker oversight by Hong Kong's monetary authority

Settlement procedures for Northbound Bond Connect will be extended through a new direct system connection between the Central Moneymarkets Unit and China Central Depository & Clearing Company, improving efficiency for investors.

Renminbi Business Expansion

The renminbi measures include expanding the HKMA's RMB Business Facility, with aggregate funding increasing from 200 billion renminbi to 500 billion renminbi starting July 10, 2026. New loan tenors of 9 months, 2 years, and 3 years will be introduced to better serve corporate financing needs.

Additional initiatives include exploring a 7-day offshore renminbi liquidity auction mechanism and developing short-term debt instruments to support yield curve construction. The authorities also signed a cooperation framework with Bank Indonesia and the People's Bank of China to promote bilateral transactions in Indonesian rupiah and offshore renminbi between the two regions. The HKMA has also shared best practices with local banks to encourage broader adoption of renminbi in cross-border business activities.