Hong Kong Seeks to Attract More Borrowers in Offshore Yuan Push

Hong Kong is seeking to attract more yuan borrowers and expand trading products in the Chinese currency, as officials capitalize on de‑dollarization trends and China’s push to build a global yuan.

Financial Secretary Paul Chan said in his budget Wednesday that the city aims to draw high‑quality issuers to boost yuan bond sales and work with the industry to establish an offshore yield curve. Hong Kong will leverage its strengths and align with China’s five‑year plan to advance yuan , he added.

The city also will promote more convenient foreign exchange quotations and transactions between the yuan and regional currencies to lower costs, Chan said, adding that its recent move to banks’ borrowing supply under the Renminbi Business Facility should support wider corporate use.

Global interest in the yuan has risen in recent years on cheaper funding costs, while Hong Kong has embraced opportunities in offshore yuan business as confidence in the dollar wanes. Since last year, measures to enhance its role as an offshore hub include yuan supply under the liquidity facility and bond-repurchase access into mainland markets.

Issuance of so-called — offshore yuan debt sold in Hong Kong — soared to a record last year, driven by a borrowing spree from more , including sovereign names. The yuan’s three-month funding cost in the city remains near historic lows, as ample liquidity has pushed down yields on the People’s Bank of China’s short-term bills and China’s .

Hong Kong also will broaden market access by expediting Chinese onshore government bond futures, as well as adding REITs to Hong Kong‑Mainland connect programs, and introducing a yuan trading counter under Southbound Stock Connect, Paul said.