China to facilitate yuan investment and financing in Hong Kong: PBOC

China continues to advance the interconnectivity between the mainland and Hong Kong, supporting and facilitating global investors in the yuan investment and financing activities in Hong Kong, Deputy Governor Zou Lan of the People's Bank of China said on Monday.

Over 800 overseas institutional investors have accessed the mainland bond market via the Northbound Bond Connect through Hong Kong, with holdings exceeding 810 billion yuan (HK$908 billion), representing one-quarter of total foreign holdings, he said.

In 2025, bond trading volume reached 9.7 trillion yuan, accounting for over 60 percent of the total trading volume by all foreign institutions, he added.

Meanwhile, mainland investors utilize the connect regime to invest in bonds denominated in the yuan, the US dollar, and the Hong Kong dollar in the city's market, with values approaching 1.2 trillion yuan.

Through the Stock Connect, mainland investors hold a total market value of more than HK$6 trillion, while the global investors have 2.5 trillion yuan of mainland stocks.

As the yuan is used in more cross-border transactions, its functions in payment, investment, financing, and reserves continue to strengthen, Zou noted.

He added that the yuan has become the world's second-largest trading and financing currency and the third-largest payment currency, as well as ranking third in weight in the International Monetary Fund's Special Drawing Rights currency basket.