Hong Kong names 11 banks as primary liquidity providers for offshore RMB

Hong Kong has also expanded the RMB repo facility to over US$2.8b.

The Hong Kong Monetary Authority has designated 11 banks as primary liquidity providers (PLPs) for the offshore renminbi (RMB) market for a two-year term.

Effective 27 October 2024, the eleven PLPs are the Agricultural Bank of China; Bank of China (Hong Kong); Bank of Communications; BNP Paribas; China CITIC Bank International;  China Construction Bank (Asia) Corporation; Citibank, N.A.; Hang Seng Bank; Hongkong and Shanghai Banking Corporation; Industrial and Commercial Bank of China (Asia); and Standard Chartered Bank (Hong Kong).

The PLPs were selected among the current PLPs and the contributing banks for CNH HIBOR fixing. They are all active participants in Hong Kong’s RMB market (CNH market), according to the central bank.

The selection was based on a range of criteria, including the institution’s capability in providing CNH funding and making a market for CNH instruments.

Additionally, the RMB repo facility for all PLPs will be increased from RMB18b to RMB20b (US$2.8b or HK$21.79b).

The HKMA said that the expansion of the PLP Scheme will enhance offshore RMB liquidity and is conducive to the continuing development of Hong Kong as the offshore RMB business hub.  

(US$1 = HK$7.77 = RMB7.13. Data from Google as of 28 October 2024, 11:07AM)