The deputy governor of the People's Bank of China (PBoC), Zou Lan, on Monday said China would promote greater financial market connectivity between the mainland and Hong Kong.

Speaking at the 19th Asian Financial Forum, Zou said the PBoC ⁠would support and advance the development of the SAR's offshore yuan market and push for the launch of yuan-denominated government bond futures in Hong Kong.

Zou also said the country's central bank would support the Hong Kong Monetary Authority's (HKMA) decision to double yuan funding under last year's swap facility to 200 billion yuan.

"We'll increase the scale of renminbi business funding arrangements to provide more abundant liquidity support for the offshore renminbi market in Hong Kong," Zou told participants.

His comments came as HKMA announced the move on Monday morning, noting that "overwhelming" bank demand had exhausted the initial quota of 100 billion yuan — just three months after the RMB Business Facility (RBF) was launched in October.

"The experience so far suggests that the RBF has not only served corporates in Hong Kong, but has also successfully channelled offshore renminbi funds to regions such as the Asean countries, the Middle East, and Europe," HKMA said in a statement, adding that more banks indicated their interest to join as well.

The RBF provides banks with a stable and relatively lower-cost source of renminbi funds, enabling them to offer yuan financing to their corporate clients and support the wider use of yuan, according to the HKMA.

Noting that the renminbi has become one of the largest currencies for trade financing and payments worldwide, Zou said the PBoC would also increase the offshore issuance of yuan-denominated government bonds, and push for the listing of yuan government bond futures in Hong Kong to provide more liquidity-management and hedging tools for investors.

Separately, Zou said the country would support the SAR to become an international gold trading centre. (Additional reporting by Reuters)