RMB Liquidity Facilities

RMB Liquidity Facility

The RMB Liquidity Facility was introduced in June 2012 to address potential short-term liquidity tightness in the offshore RMB market. In the light of experience in operating the facility and developments in the offshore RMB market, the HKMA has made various refinements to the facility over the years.

Banks are welcome to use the RMB Liquidity Facility to meet short-term funding needs. Currently, under the RMB Liquidity Facility, banks may obtain from the HKMA:

overnight RMB funds available on the same day;
1-day, 1-week, 2-week and 1-month RMB funds available on the next day; and
intraday RMB funds.

Terms and Conditions of the RMB Liquidity Facility

Primary Liquidity Providers

In October 2014, the HKMA introduced the Primary Liquidity Providers (PLP) scheme. Currently, eleven banks were designated as the PLPs which pledged to expand their market-making activities in Hong Kong for various offshore RMB instruments, and use the Hong Kong platform in promoting their global offshore RMB business. In return, the HKMA provides a dedicated RMB repo facility to each of the PLPs so as to facilitate their liquidity management when carrying out more market-making and other business activities in the offshore RMB market. The PLPs can obtain intraday or overnight RMB funds from the HKMA under the repo facility, which are subject to the same terms and conditions as those of the RMB Liquidity Facility.

RMB Business Facility

In February 2025, the HKMA launched the RMB Trade Financing Liquidity Facility (RMB TFLF) for banks in Hong Kong as a stable source of RMB funds, so as to support banks in providing RMB trade finance services to their corporate customers.

Terms and Conditions of the RMB Trade Financing Liquidity Facility

In September 2025, the HKMA announced the introduction of a new RMB Business Facility (RBF) that replaces the RMB TFLF, incorporating enhanced terms and extending the scope of eligible RMB financing activities in phases. The potential usage of the RBF by banks is significantly broader than that of the RMB TFLF, further strengthening Hong Kong’s leading position as the global offshore RMB business hub.

The RBF has a total size of RMB100 billion, offering 1-month, 3-month, 6-month and 1-year RMB funds, with interest rates referencing onshore interest rates. The RBF, apart from operating through repo transactions same as the existing RMB Liquidity Facility, provides another option of cross-currency swaps where banks can swap their HKD funds for RMB funds with the HKMA.

Terms and Conditions of the RMB Business Facility

Related Information

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