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Through 20 years of diligent research I have gained a unique insight and understanding of the ongoing geopolitical shift towards a multipolar world. I have extensive knowledge of Eurasia, South America, Africa and the U.S.. I am able to assess geopolitical events and provide a very clear understanding of what those developments mean in the context of the vast global changes now unfolding.
China took another step in its long-running strategy to internationalise the yuan and strengthen Hong Kong as an offshore RMB financial hub
Expansion of yuan liquidity support to Hong Kong
China and Hong Kong increased the RMB liquidity facility available through the Hong Kong Monetary Authority (HKMA):
* Previous size: 200 billion yuan
* New size: 500 billion yuan
This facility allows Hong Kong banks and financial institutions to access offshore yuan liquidity more easily. This is significant because:
It makes the offshore yuan market deeper and more reliable.
It reduces concerns that investors may struggle to obtain yuan during periods of market stress.
It supports more yuan-denominated transactions outside mainland China.
Expansion in Bond Connect access
The Southbound Bond Connect quota was increased from 500 billion yuan to 800 billion yuan
Bond Connect allows mainland Chinese investors to buy bonds in Hong Kong and participate more easily in offshore markets. The expansion also broadens el