Hong Kong-based Bank of East Asia announced on Jan 28 it has entered into a strategic co-operation agreement to extend its first cross-border renminbi loan to an enterprise in Qianhai, a financial pilot zone in Shenzhen, Guangdong province.

Incorporated in Qianhai, the enterprise is engaged in the logistics industry, the bank said in a statement.

The transaction comes after a new rule released in December allowing Qianhai-incorporated Chinese mainland enterprises that also operate or invest in Qianhai, to borrow renminbi directly from banks in Hong Kong for the construction and development of Qianhai.

"BEA's renminbi trade finance business has grown rapidly in the past few years. Following the recent announcement of the implementation details on lending to Qianhai enterprises, we will focus on expanding our renminbi cross-border lending business. The bank will also dedicate more resources to helping its mainland corporate customers grow their businesses in Qianhai," said David K.P. Li, chairman and chief executive of BEA.

The liberalization measures will not only help promote the development of the offshore renminbi market in Hong Kong, but also enhance the innovation of the financial services industry in Qianhai, the bank said.