Hong Kong Helps Re-Accelerate RMB’s International Use

RMB’s International Use Embraces New Opportunities

On one hand, evolving global economic conditions and shifting interest rate dynamics have led to growing demand for diversified cross-border financing, investment and asset allocation. Accordingly, the RMB’s appeal both as a currency for investment and financing and as a high-quality global safe asset has strengthened markedly, creating significant market opportunities for expanding its international use.

On the other hand, China has continued to advance high-standard financial opening-up, including its bond market. These efforts have facilitated cross-border RMB flows under the capital account and significantly enhanced the depth and openness of China’s financial market, providing strong policy support for RMB’s international adoption.

Hong Kong’s Offshore RMB Market Offers Unique Advantages

Benefiting from its free-port status, common law system, and a highly open regulatory environment, Hong Kong has developed the world’s largest offshore RMB business hub, with a comprehensive offshore RMB market ecosystem, making it a key pivot for the currency’s global use.

Hong Kong holds the largest offshore pool of RMB funds. By the end of May 2026, RMB deposits in Hong Kong rose to RMB 1.13 trillion, reaching a recent high and accounting for 60% of RMB deposits across major offshore markets. This has provided solid funding support for RMB business in Hong Kong and the broader offshore RMB market.

Hong Kong plays a pivotal role in cross-border RMB payment. SWIFT data show that more than 70% of RMB payments in offshore markets are settled through the city. The Hong Kong RMB Real Time Gross Settlement (RTGS) system provides a key payment and clearing platform for global banks, enhancing offshore RMB settlement efficiency.

Hong Kong is the world’s foremost RMB foreign exchange trading center. According to BIS data released in April 2025, Hong Kong ranks first globally in terms of average daily RMB FX turnover, reinforcing its leading position in this market.

Hong Kong is also a major RMB funding center, with the world’s largest offshore RMB bond market. Dim sum bonds issuance in Hong Kong in 2025 was 1.85 times higher than in 2021, with growth momentum continuing in the first quarter of 2026. Additionally, monthly issuance in March more than doubled from the previous period. The issuer base has continued to diversify, with multilateral institutions and foreign government entities accelerating their expansion in the city. The Indonesian government and the Development Bank of Kazakhstan issued their first dim sum bonds in Hong Kong, while the Indonesian government returned for a second offering in the second quarter of 2026. Issuance of longer-tenor dim sum bonds has likewise multiplied, indicating growing investor confidence in RMB financing.

Latest Policies Accelerate RMB’s International Use

The Mainland and Hong Kong have continued to deepen financial market cooperation in recent years, achieving solid progress in enhancing the functions of the offshore RMB market. In September 2025, the Hong Kong Monetary Authority and the Securities and Futures Commission jointly released the Roadmap for the Development of Fixed Income and Currency Markets, setting out four pillars and a systematic development blueprint. With both sides pushing the agenda forward, funding arrangements for RMB business have been upgraded, and offshore RMB bond repurchase business has been formally launched. In addition, with the expansion of the Connect schemes, refined trading mechanisms, and optimized government bond issuance, the offshore RMB bond yield curve has become more granular, enhancing the robustness of Hong Kong’s offshore market.

The outline of the national 15th Five-Year Plan explicitly supports Hong Kong in strengthening its role as a global offshore RMB business hub. Recently, Mainland and Hong Kong financial regulators jointly announced a package of new measures to deepen financial cooperation, spanning Bond Connect, Swap Connect, offshore RMB liquidity management, market infrastructure, and capital market connectivity. Among these initiatives, the joint development of a new integrated trading platform, the introduction of offshore RMB Treasury futures, further expansion of the scope and scale of Bond Connect (Southbound Trading), and broader acceptance of RMB bonds as eligible collateral in offshore markets have attracted widespread attention. These new measures are expected to inject further momentum into Hong Kong’s offshore RMB market, facilitate global access to RMB assets, and advance RMB’s international use to a new development stage.