Hang Seng Bank has become one of the first banks to participate in the Renminbi Trade Financing Liquidity Facility (‘RMB TFLF’) introduced by the Hong Kong Monetary Authority (‘HKMA’).
Today, the Bank successfully 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.
Liz Chow, Head of Global Markets at Hang Seng Bank, said: “As Hong Kong’s largest domestic bank, Hang Seng Bank is excited to support various HKMA initiatives aimed at solidifying Hong Kong's status as a leading financial centre. 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: "We are pleased to offer a competitive trade and treasury solution for RMB-denominated business activities for our customers. 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.”