Hang Seng Bank executes pilot trades under RMB Trade Financing Liquidity Facility

It is one of the first banks to participate in the facility.

Hang Seng Bank is participating in the Renminbi Trade Financing Liquidity Facility introduced by the Hong Kong Monetary Authority (HKMA), reportedly one of the first banks to do so, according to a press release.

As of 28 February, the Hong Kong bank successfully executed pilot trades under the RMB TFLF for four corporate customers.

“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,” said Liz Chow, head of global markets, Hang Seng Bank.

“This new facility also enables us to provide sustainable and attractive financial solutions addressing the growing demand for RMB financing amongst our commercial customers,” Chow said.