Hong Kong banks may extend yuan loans to firms in Shenzhen's Qianhai zone

Firms in Shenzhen's Qianhai development zone will be allowed to borrow directly from Hong Kong banks in yuan, the People's Bank of China branch in the mainland city said yesterday.

The announcement, following months of planning and speculation, was taken as evidence of a fresh effort by authorities to energise cross-border yuan lending. It will boost Hong Kong's offshore yuan business and enable much of the yuan that has accumulated offshore to flow back to the mainland.

via Business feed http://www.scmp.com/news/china/article/1113946/hong-kong-banks-may-extend-yuan-loans-firms-shenzhens-qianhai-zone