The Hong Kong Monetary Authority (HKMA) will increase the liquidity available to banks participating in its offshore yuan market scheme to 22 billion yuan ($3.1 billion) from 20 billion yuan, appointing 12 banks as primary liquidity providers for a new two-year term.
The designations will take effect on Oct. 27, 2026, following the expiry of the current term, the HKMA said.
The scheme supports liquidity in Hong Kong’s offshore renminbi market, known as the CNH market, and aims to reinforce the city’s position as a global hub for offshore yuan business.
The 12 designated banks are Agricultural Bank of China, Bank of China (Hong Kong), Bank of Communications, BNP Paribas, China CITIC Bank International, China Construction Bank (Asia), Citibank, Deutsche Bank, Hang Seng Bank, HSBC, Industrial and Commercial Bank of China (Asia), and Standard Chartered Bank (Hong Kong).
The HKMA selected the banks based on several criteria, including their ability to provide offshore yuan funding, make markets in yuan-denominated instruments and their commitment to developing offshore renminbi business through Hong Kong.
Increasing the total repurchase agreement facility available to the providers is expected to strengthen liquidity support for the offshore yuan market, the authority said.
The HKMA regularly reviews the scheme’s operations and the performance of participating banks, including whether adjustments are needed to the number of providers and the size of the liquidity facility.
