RMB: Key market updates shaping cross-border connectivity

01

HKMA Renminbi Business Facility (RBF)

In September 2025, the Hong Kong Monetary Authority (HKMA) launched the RMB Business Facility (RBF) to support RMB-denominated financing for corporates with RMB payables or receivables. The facility replaces the former RMB Trade Financing Liquidity Facility (TFLF) with enhanced terms including:

• Pricing based on SHIBOR (removed previous 25bps mark-up)
• Funding tenor max. 1 year (previous max funding tenor is 6 months)*
• Extend the onshore funding to overseas entities via intragroup funding mechanism
  (SC can support over 30 markets with RMB capabilities)
• Eligible product include trade finance (Phase 1: 9 Oct 2025), and expanding to include working capital loan and CAPEX (Phase 2: 1 Dec 2025)

*Rollover of SHIBOR funding rates can be applied if client’s loan tenor is longer than 1 year.

As one of the first banks to secure quota under the previous TFLF, Standard Chartered Bank (Hong Kong) Limited went live with RBF Phase 1 in October 2025, supporting trade finance in Hong Kong and intragroup transactions. We are now preparing for RMB phase 2 and 3 to further strengthen our leadership in RMBI and solidify Hong Kong’s position as a global RMB funding hub. Find out more about the introduction of RMB Business Facility and enhancement of the existing RMB Liquidity Facility.

02

Enhancements to Offshore RMB Bond Repurchase (Repo)

In July 2025, the HKMA introduced two enhancements to the offshore RMB bond repo framework for Northbound Bond Connect investors:

• Rehypothecation of bond collateral during the repo period
• Cross-currency repo support (HKD, USD, EUR)

These enhancement measures aim to adopt international market best practices and enhance operational efficiency, further expand the depth and breadth of the offshore repo market, improve the market-based mechanism for offshore RMB liquidity management, and broaden the use of onshore RMB bonds as collateral in the offshore market.

On launch day, Standard Chartered Bank (Hong Kong) Limited supported the first cross-currency repo transactions for CITIC Securities International Capital Management, Eastfort Asset Management, GF Global Capital, and Huatai International Financial Holdings, using Northbound Bond Connect holdings as collateral. Find out more about how we have helped our clients reuse the bond collaterals during the repo period. 

Find out more about the Enhancement Arrangements for the Offshore RMB Bond Repurchase Business announced by HKMA.

03

Cross-boundary bond repo business

In September 2025, the People’s Bank of China (PBoC), HKMA, CSRC, and SAFE jointly launched the cross-boundary bond repo business, enabling eligible foreign investors under Bond Connect and CIBM Direct to access China’s onshore interbank repo market.

This initiative follows the February 2025 launch of the offshore RMB repo framework and represents a major step towards integrated onshore-offshore liquidity.

On the launch day, Standard Chartered Bank (Hong Kong) Limited (as an offshore institution) completed an onshore repo transaction with CITIC Securities Company Limited (via CIBM Direct). We also assisted CITIC Securities International Capital Management with its own cross-boundary repo through Bond Connect.

Find out more about the launch of cross-boundary bond repurchase business announced by HKMA.

04

Hong Kong’s roadmap for Fixed Income and Currency (FIC) Markets

Also in September 2025, the HKMA and Securities and Futures Commission (SFC) jointly announced HK’s roadmap for the development of FIC markets (“Roadmap”) to position the city as a global FIC hub fostering demand, liquidity and innovation. The Roadmap outlines key initiatives across four pillars of primary market issuance, secondary market liquidity, offshore RMB business and next-generation infrastructure.

Key initiatives include:

• Issuance of long-dated offshore Chinese Government Bonds (CGBs) in Hong Kong
• Development of a repo central counterparty particularly for CGBs
• Expansion of RMB dual counter and encourage more issuers to introduce RMB counters for stock trading
• Enhancement of Connect schemes to increase offshore RMB liquidity and RMB-related product offerings including offshore CGB futures in Hong Kong and implementation of cross-boundary repo

These efforts strengthen Hong Kong’s role as a gateway for global issuers and investors seeking RMB-linked opportunities. Find out more about SFC and HKMA’s roadmap by HKMA.