#70%OffshoreRMBViaHK

Hong Kong Finance Minister Paul Chan shared striking figures regarding the city's position in global offshore yuan transactions. According to Chan, Hong Kong alone handles over seventy percent of global offshore yuan payment and clearing transactions, with monthly interbank clearing volume exceeding 41 trillion yuan, averaging approximately 2 trillion yuan per day.

The dynamic behind these figures is actually a continuation of a trend that has been strengthening in recent years. With China pursuing its high-level opening-up policy, both foreign companies investing in the mainland and Chinese companies accelerating their global expansion with high-tech products and professional services are creating a two-way flow of capital and trade. Chan noted that this reciprocal flow has led to a significant increase in demand for yuan-denominated trade clearing and cash management.

To meet this demand, the Monetary Authority of Hong Kong, with the support of the People's Bank of China, has launched a yuan liquidity facility, allowing commercial banks to access yuan funds at lower interest rates to support corporate trade financing. More and more companies are choosing Hong Kong for their international or regional headquarters and adopting the yuan as their primary currency.

To put this development into a broader context, Hong Kong's offshore yuan liquidity pool has reached approximately 1 trillion yuan, or around $140 billion in dollar terms, and the city offers a wide range of yuan-denominated financial services, including clearing, financing, and asset management. Furthermore, there is a growing trend worldwide for countries to conduct trade using their own currencies rather than relying on the dollar, creating concrete use cases for the yuan.

The Monetary Authority of Hong Kong is expected to announce new measures in the coming weeks, aiming to further solidify the city's position as the world's largest offshore yuan hub. For those following yuan-linked assets and Asian financial markets through Gate, the key point to watch is the content of these new measures, as the acceleration of yuan internationalization could create new opportunities in both trade finance and digital asset infrastructure.