Hong Kong will step up efforts to encourage businesses to increase their usage of offshore yuan in trade, investment, and financing, while strengthening collaboration with regional central banks in the future, said Financial Secretary Paul Chan Mo-po in his latest blog post on Sunday.
Chan pointed out that Hong Kong remains the world’s premier offshore yuan business hub, processing over 70 percent of global offshore yuan payments and settlements. Interbank settlement volume in the city exceeds 41 trillion yuan (HK$47.38 trillion) monthly, equivalent to an average daily settlement scale of 2 trillion yuan, underscoring Hong Kong's commitment to driving yuan internationalization and financial market connectivity.
He said that as China continues to expand its high-level opening-up, a growing number of foreign firms are investing in the mainland, while Chinese companies are accelerating their global expansion with high-end manufacturing, tech products, and professional services. This two-way flow of people, goods, and cross-border capital has triggered a surge in demand for trade settlement and cash management in yuan, Chan noted.
Chan noted that to meet this demand, the Hong Kong Monetary Authority has implemented a yuan liquidity facility backed by the People's Bank of China, enabling commercial banks to access yuan funds at lower interest rates to support corporate trade finance. An increasing number of companies are now choosing Hong Kong for their international or regional headquarters and adopting the yuan as their primary settlement currency.
Chan expressed strong confidence in Hong Kong's unique position under the nation's modernization drive, stating that Hong Kong has both the capability and responsibility to contribute proactively to national rejuvenation.
