China Macro: RMB Internationalization Blog (6): A Pivotal Announcement for the CNH market

Research evidence excerpt

China Macro: RMB Internationalization Blog (6): A Pivotal Announcement for the CNH market

Deutsche Bank

Research

Economics Date

China Macro 9 July 2026

RMB Internationalization Blog (6): A Pivotal

Yi Xiong, Ph.D. Announcement for the CNH market

Chief Economist

+852-2203-6139

On July 7, China unveiled a landmark package to bolster the offshore RMB

market. The move signals a long-term strategic commitment to cementing Hong

Kong's role as the offshore RMB hub. The CNH market will be a core component

of RMB internationalization, connecting the large onshore financial market with

growing international use of the RMB. We believe the CNH market is now on a

path to overcome its current size and liquidity constraints, creating a self-

reinforcing cycle of growth.

Mainland and Hong Kong regulators will introduce a series of new measures to

support the offshore RMB market. On July 7, the PBOC, HKMA, and SFC jointly

announced eleven new measures to promote the CNH market’s development in

Hong Kong. This coordinated effort represents the most significant policy push

to date to reinforce Hong Kong's role as the preeminent offshore hub for

Renminbi: enhancing CNH funding in the banking system, facilitating a deeper

and more active Dim Sum bond market, and supporting the development of new

products and entry of new market participants.

This is not the first time such joint-announcements have been announced;

previously, the PBOC and HKMA jointly unveiled policies in early 2024 and early

2025 to deepen financial cooperation between Hong Kong and Mainland China.

But the latest policy package is significantly more forceful than previous ones,

and is more sharply focused on developing the offshore RMB market.

The most important takeaway, we think, is the Chinese government’s full support