Offshore Yuan Funding Costs in Hong Kong Sink to Record Low

The cost to borrow the offshore yuan in Hong Kong dropped to the lowest since data became available in 2013, putting pressure on the Chinese currency even as the dollar weakens.

The one-month Hong Kong interbank offered rate for the yuan — known as Hibor — dropped 11 basis points to 1.46%, according to official data.

The record low rate is basically a sign of how easy it is for traders to source the Chinese currency in the city and allows them bet on further yuan weakness. It comes amid expectations Beijing will keep liquidity ample to boost its economy ...