Enhancement of the Renminbi (RMB) Liquidity Facility

55th Floor, Two International Finance Centre, 香 港 中 環 金 融 街 8 號 國 際 金 融 中 心 2 期 55 樓 8 Finance Street, Central, Hong Kong 網 址：www.hkma.gov.hk Website: www.hkma.gov.hk Our Ref.: G12/129/4C B1/15C 26 September 2025 The Chief Executive All Authorized Institutions Dear Sir / Madam, Enhancement of the Renminbi (RMB) Liquidity Facility The Hong Kong Monetary Authority (HKMA) will introduce the following enhancement to the RMB Liquidity Facility with effect from 9 October 2025:

1. Reallocation of the intraday and overnight funds – The intraday and
   overnight funds, currently each for RMB 20 billion, will be changed to RMB 30 billion and RMB 10 billion respectively. The aim is to allocate resources to better meet the need of intraday funding for the increasing RMB settlement volume as cross-border RMB payments and offshore RMB activities continue to grow in Hong Kong. The total size of RMB 40 billion remains unchanged. Separately, the Primary Liquidity Providers scheme with a total of RMB 20 billion will also remain unaffected.
2. Introduction of two-week and one-month repo for T+1 settlement – In
   addition to providing funds of one day and 1-week tenors on T+1 basis, the existing facility will be expanded to also provide funds of two-week and one￾month via repo transactions. The interest rate will reference the prevailing market interest rates. As RMB business and activities continue to flourish, RMB funding demand increases. The facility serves as a backstop of

liquidity for banks, and the extended tenors allow more flexibility for banks in managing their funding. The updated terms and conditions for the RMB Liquidity Facility are set out in the Annex. Should you have any questions on the above, please contact the HKMA at 2878 8104. Yours faithfully, Daryl Ho Executive Director (Monetary Management) Encl.

Annex
RMB Liquidity Facility
Terms and Conditions

1. Intraday Repo
   Eligible parties (1)
   Authorized Institutions participating in RMB business (Participating AIs) Eligible collateral

• Exchange Fund Bills and Notes (EFBN)
• HKSAR Government bonds (HKGB)
• RMB denominated debt securities issued in the onshore market by (i) the
  Ministry of Finance of the People’s Republic of China (CMOF); and (ii) the policy banks of the People’s Republic of China (China Policy Banks), namely Agricultural Development Bank of China, China Development Bank, and Export and Import Bank of China
• RMB, USD and EUR denominated debt securities issued in offshore markets
  by (i) the CMOF; (ii) the People’s Bank of China (PBOC); (iii) the Local People’s Governments at various levels of the People’s Republic of China (Local People’s Governments); and (iv) China Policy Banks Haircut on eligible collateral
• EFBN and HKGB: 2% per year of remaining maturity, plus 2% for currency risk
• RMB denominated debt securities issued by PBOC, CMOF, Local People’s
  Governments and China Policy Banks: 2% per year of remaining maturity, minimum 2%
• USD and EUR denominated debt securities issued by PBOC, CMOF, Local
  People’s Governments and China Policy Banks: 2% per year of remaining maturity, minimum 2%, plus 2% for currency risk Interest rate • Average of the most recent 3 TMA overnight CNH HIBOR, inclusive of the CNH HIBOR on the same day (or the average of the nearest 3 preceding CNH HIBOR if there is no CNH HIBOR on the same day), minimum at 0%
• To be charged based on the actual time used during the day on a per minute basis
  Mode of operation
• Participating AIs may initiate intraday repo transactions with the HKMA via the
  CMU Member Terminal (CMT)
• Intraday repo not repaid before the end of an operating day (i.e. 5:00 am the next
  calendar day) will be converted into overnight repo, and subject to full overnight interest charge. Interest charge on the relevant intraday repo will be waived. The converted overnight repo should be repaid before 2:00 pm on the next operating day, except for Saturdays and Sundays (See details in operating procedures of the CMU (2)) Operating hours On each operating day of RMB RTGS which spans from 8:30 am to 5:00 am the next calendar day, except for Saturdays and Sundays Interest payment Interest will be debited from the Participating AIs’ RMB RTGS accounts held with the Clearing Bank after the end of an operating day on which the Participating AIs repurchase the securities Note:

(1) Participating AIs are required to have signed a bilateral Master Sale and Repurchase Agreement for the purpose of providing intraday and overnight RMB liquidity with the HKMA. (2) CMU operating procedures include CMU Reference Manual and relevant circulars issued by the HKMA from time to time.
2. Overnight Repo
Eligible parties (1)
Authorized Institutions participating in RMB business (Participating AIs) Eligible collateral

• Exchange Fund Bills and Notes (EFBN)
• HKSAR Government bonds (HKGB)
• RMB denominated debt securities issued in the onshore market by (i) the
  Ministry of Finance of the People’s Republic of China (CMOF); and (ii) the policy banks of the People’s Republic of China (China Policy Banks), namely Agricultural Development Bank of China, China Development Bank, and Export and Import Bank of China
• RMB, USD and EUR denominated debt securities issued in offshore markets
  by (i) the CMOF; (ii) the People’s Bank of China (PBOC); (iii) the Local People’s Governments at various levels of the People’s Republic of China (Local People’s Governments); and (iv) China Policy Banks Haircut on eligible collateral
• EFBN and HKGB: 2% per year of remaining maturity, plus 2% for currency risk
• RMB denominated debt securities issued by PBOC, CMOF, Local People’s
  Governments and China Policy Banks: 2% per year of remaining maturity, minimum 2%
• USD and EUR denominated debt securities issued by PBOC, CMOF, Local
  People’s Governments and China Policy Banks: 2% per year of remaining maturity, minimum 2%, plus 2% for currency risk Interest rate Average of the most recent 3 TMA overnight CNH HIBOR, inclusive of the CNH HIBOR on the same day (or the average of the nearest 3 preceding CNH HIBOR if there is no CNH HIBOR on the same day), plus 25 bps, subject to a minimum of 0.25% Mode of operation
• Participating AIs to initiate overnight repo transactions with the HKMA via the
  CMU Member Terminal (CMT)
• Participating AIs should reverse the repo via CMT before 2:00pm the next
  operating day, except for Saturdays and Sundays (see details in operating procedures of the CMU (2)) Operating hours On each operating day of RMB RTGS which spans from 8:30 am to 5:00 am the next calendar day, except for Saturdays and Sundays Holiday If the repurchase date of an overnight repo falls on a Hong Kong holiday and there are insufficient funds in the account of the Participating AI for the repurchase, the outstanding repo will be rolled over to the following operating day (see details in operating procedures of the CMU (2))

Interest payment
Interest will be debited from the Participating AIs’ RMB RTGS accounts held with the Clearing Bank after the end of an operating day on which the Participating AIs repurchase the securities Notes:
(1) Participating AIs are required to have signed a bilateral Master Sale and Repurchase Agreement for the purpose of providing intraday and overnight RMB liquidity with the HKMA. (2) CMU operating procedures include CMU Reference Manual and relevant circulars issued by the HKMA from time to time.
3. One-day, One-week, Two-week and One-month Repo (T+1 Settlement)
Eligible parties (1)
Authorized Institutions participating in RMB business (Participating AIs) Eligible collateral

• Exchange Fund Bills and Notes (EFBN)
• HKSAR Government bonds (HKGB)
• RMB denominated debt securities issued in the onshore market by (i) the
  Ministry of Finance of the People’s Republic of China (CMOF); and (ii) the policy banks of the People’s Republic of China (China Policy Banks), namely Agricultural Development Bank of China, China Development Bank, and Export and Import Bank of China
• RMB, USD and EUR denominated debt securities issued in offshore markets
  by (i) the CMOF; (ii) the People’s Bank of China (PBOC); (iii) the Local People’s Governments at various levels of the People’s Republic of China (Local People’s Governments); and (iv) China Policy Banks Haircut on eligible collateral
• EFBN and HKGB: 2% per year of remaining maturity, plus 2% for currency risk
• RMB denominated debt securities issued by PBOC, CMOF, Local People’s
  Governments and China Policy Banks: 2% per year of remaining maturity, minimum 2%
• USD and EUR denominated debt securities issued by PBOC, CMOF, Local
  People’s Governments and China Policy Banks: 2% per year of remaining maturity, minimum 2%, plus 2% for currency risk Interest rate By reference to prevailing market interest rates Mode of operation
• Participating AIs interested in borrowing RMB funds should contact the dealing room
  of the HKMA at 2878 8104 or Reuters dealing code EFHK
• On T+1, RMB funds will be credited to the Participating AI’s RMB RTGS account
  held with the Clearing Bank subject to the receipt of the securities by the HKMA before 4:00 pm Operating hours Request for repo should be made before 12:00 noon on each Hong Kong business day (not available on Mainland holidays)

Holiday If the value date or maturity date of the transaction falls on a Hong Kong or Mainland holiday, it will be delayed to the next business day which is not a holiday in Hong Kong and the Mainland Interest payment Interest payment will be made by the Participating AIs as they repurchase the securities Notes:
(1) Participating AIs are required to have signed with the HKMA the Master Sale and Repurchase Agreement for the provision of liquidity assistance.