Hui announced that the Hong Kong Monetary Authority is in talks with the People’s Bank of China about optimizing their currency swap arrangement. The HKMA will roll out a seven-day offshore yuan liquidity tendering facility, and is studying short-term debt instruments to fill out the offshore yuan rate curve.
HKEX is separately preparing an offshore renminbi bond index to anchor ETFs, and from November, Northbound Bond Connect holdings can be used as collateral across three HKEX clearing houses.
Hong Kong’s offshore yuan lending hit a record 935 billion yuan in 2025, and bond issuance reached 1 trillion yuan for a second straight year. The HKMA has increased its RMB Business Facility to 500 billion yuan and lengthened the loan term to three years.
In his speech, Hui said the government will mainly spend in Hong Kong dollars. Hong Kong will also keep the HK dollar tied to the US dollar rather than switching to a link with the yuan or a floating rate.
Hui also said that the government will table an amendment bill this year to set up a licensing regime covering virtual-asset trading, custody, advisory and management services.
Meanwhile, stablecoin issuing is already running. The Stablecoins Ordinance took effect on August 1, 2025, and drew 36 applications by the end of that September. Cryptopolitan reported in June that from those 36 applications, the first two issuer licenses were awarded.
The Policy Address instructs the Securities and Futures Commission to promote trading of regulated stablecoins on licensed platforms, but barely any infrastructure has been put in place for that.
How are the licensed stablecoin issuers in Hong Kong operating?
HSBC said on September 30 that it had named its forthcoming Hong Kong-dollar coin “HSBC RedCoin.” The company is planning a second-half launch limited at first to its PayMe wallet and mobile app.
The bank’s survey of more than 1,000 customers found 74% could name at least one stablecoin use case, though a quarter wrongly assumed the tokens were government-issued.
The second license went to Anchorpoint Financial, a venture backed by Standard Chartered, HKT and Animoca Brands. In August, it started testing its Hong Kong-dollar token, HKDAP, with a select group of professional investors.
Both licensees are building on Hong Kong-dollar pegs rather than anything tied to the yuan. A February notice from the PBOC and seven other agencies barred unauthorized yuan-linked stablecoins both onshore and offshore, extending China’s long-standing crypto ban and warning that no firm may issue a renminbi-pegged coin abroad without approval.