Hang Seng Bank announced it is among the first participants in the Renminbi Trade Financing Liquidity Facility (RMB TFLF) introduced by the Hong Kong Monetary Authority (HKMA). Hang Seng executed pilot trades under this RMB TFLF for four corporate customers, marking a significant step in its commitment to facilitate cross-boundary financing for corporate clients and to contribute to Hong Kong’s development as a major offshore RMB market.
Some RMB50 billion ($6.9bn) of the total size of RMB100 billion of this facility has been allocated to the participating banks, which also include BNP Paribas, Citic and Deutsche Bank.
Liz Chow, head of Global Markets at Hang Seng Bank, said in a statement: “The newly launched RMB TFLF promotes trade finance settled in RMB, enhancing the liquidity of the city’s offshore RMB markets and potentially narrowing the onshore-offshore RMB interest rate gap in the medium to longer term. This new facility also enables us to provide sustainable and attractive financial solutions addressing the growing demand for RMB financing among our commercial customers.”
Regina Lee, head of Commercial Banking at Hang Seng Bank, said: “By the end of 2024, the RMB ranked as the third most-used currency in global trade finance. Its popularity for international trade settlement has surged among our customers in Hong Kong and the Greater Bay Area, as they seek cost efficiencies and diversify their supply chains. With the support of the RMB TFLF, we are well-positioned to support the long-term growth and success of our customers.”