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HKMA Chief Executive’s response to media regarding the new measures announced by PBoC Governor Pan Gongsheng
08
Jul
Jul
On July 7,At the Hong Kong FIC & Bond Connect Summit, PBOC Governor Pan Gongsheng unveiled 11 new financial measures jointly developed with the HKMA and SFC to deepen cross-border financial cooperation between the Mainland and Hong Kong, comprising six initiatives to boost Hong Kong’s fixed income and currency markets and cross-market connectivity and five measures to advance its offshore RMB business, which are formulated based on market feedback to bring greater operational flexibility and development momentum to the industry.
Key Bond Connect upgrades include raising the annual Southbound Bond Connect investment quota from RMB 500 billion to RMB 800 billion, launching repo business with relevant bonds as collateral, expanding product coverage, linking with Macao’s bond market and strengthening market maker management, as well as extending Northbound Bond Connect settlement hours via direct system linkage to lift settlement efficiency. To bolster offshore RMB development, the HKMA will raise the total quota of its RMB Business Facility from RMB 200 billion to RMB 500 billion starting July 10, 2026 and add new funding tenors, explore a 7-day offshore RMB liquidity tendering mechanism and offshore RMB short-term debt issuance to improve the RMB yield curve, and launch a bilateral currency cooperation framework with Indonesia to facilitate cross-border RMB usage for real economy transactions. As the world’s first monetary authority to join the PBOC’s RMB repo facility for central banks and sovereign funds, the HKMA has completed the inaugural transaction, which helps global institutions manage RMB liquidity and accelerates RMB internationalisation. These 11 measures will consolidate Hong Kong’s status as a premier international financial centre, fixed income trading hub and offshore RMB hub, and the HKMA will continue close collaboration with the PBOC for steady policy implementation and iterative optimisation based on market feedback.
Source: https://www.hkma.gov.hk/eng/news-and-media/speeches/2026/07/20260707-1/
Relative Annex: https://www.hkma.gov.hk/media/eng/doc/key-information/speeches/s20260707e1.pdf