The authority said each bank was granted a specific quota based on the scale of their business and the lenders in turn would provide yuan-denominated trade financing to their corporate clients.
“Subject to the operation of the facility and market demand, we plan to proceed to the next phase of quota allocation around the middle of this year,” the HKMA said.
“Banks not yet ready in Phase 1 are encouraged to continue developing their [yuan] trade finance business so as to be ready to join in later phases.”
HSBC, the city’s largest commercial bank, said it had already arranged several trade-finance transactions for corporate clients, who have reacted positively to the availability of yuan-denominated settlement.
“This new facility will help unlock new growth opportunities for businesses, and we look forward to delivering competitive trade financing solutions tailored to our clients’ evolving needs,” said Luanne Lim, CEO of HSBC Hong Kong, in a statement.
