Collateral Management

For the purpose of assisting market participants to meet evolving funding demands, the CMU provides different collateral management services to raise securities financing efficiencies.

Our main services include*:​​​​​

• Repo facility (both intraday and overnight) in Hong Kong dollar, US dollar, Euro and Renminbi
• Triparty repo between CMU participants (Bank Repo)
• Collateralised lending service for primary bond issuance
• Securities lending programme for eligible CMU instruments and Government bonds

Benefits

• Various choices of repo facilities to cater for different liquidity needs
• A wide range of acceptable collaterals
• Some services are backed by the HKMA to enhance security

HKD Intraday Repo & Discount Window Provided by the HKMA

Eligible Securities

Exchange Fund Papers

Eligible Participants (Borrowers)

A Recognised Dealer (RD) for Exchange Fund Bills and Notes or Specified Instruments who is also a direct participant in the Hong Kong dollar RTGS

RMB Intraday & Overnight Repo Provided by the HKMA

Eligible Securities

• (i) Exchange Fund Bills and Notes;
• (ii) HKSAR Government Bonds;
• (iii) RMB denominated debt securities issued in the onshore market by the Ministry of Finance of the People's Republic of China (CMOF) and the policy banks of the People's Republic of China (China Policy Banks), namely Agricultural Development Bank of China, China Development Bank, and Export and Import Bank of China;
• (iv) RMB, USD and EUR denominated debt securities issued in offshore markets by the People's Bank of China (PBOC); the Ministry of Finance of the People's Republic of China (CMOF); the Local People's Governments at various levels of the People's Republic of China (Local People's Governments); and the policy banks of the People's Republic of China (China Policy Banks), namely Agricultural Development Bank of China, China Development Bank, and Export and Import Bank of China

Eligible Participants (Borrowers)

A CMU Participant must be:

• (i) an Authorised Institution (AI) in Hong Kong;
• (ii) a Direct Participant of RMB CHATS; and
• (iii) a Recognised Dealer for Exchange Fund Bills and Notes, and Government Bonds

USD/EUR/RMB Intraday & Overnight Repo with the Settlement Institutions (SI) / Clearing Banks (CB)

Eligible Securities

Please refer to the respective websites of the SI/CB on information about eligible securities:

Eligible Securities for USD Repo: view here

Eligible Securities for EUR Repo: view here

Eligible Securities for RMB Repo: view here

Triparty Repo Between CMU Participants (Bank Repo)

Eligible Securities

The Eligible Securities for Bank Repo transactions are agreed bilaterally by the Buyer and Seller.

Collateralised Lending Service for Primary Bond Issuance

Specific Purpose

This additional liquidity solution is to facilitate primary issuance of bonds lodged with the CMU only.

Intraday Lending Interest Rate
Intraday liquidity for HKD, EUR, RMB and USD is free of charge

Eligible Securities

Currently, for HKD, USD, EUR and RMB, the eligible securities include:

• (i) Exchange Fund Bills and Notes;
• (ii) HKSAR Government Bonds;
• (iii) High quality liquid securities denominated in HKD, USD, EUR, RMB, JPY or GBP issued by Governments or supranationals;
• (iv) Other investment grade securities (as rated by major rating agencies) denominated in HKD, USD, EUR, RMB, JPY or GBP

Eligible Participants (Borrowers)

CMU participants taking a billing & delivery or a settlement agent role in the primary issuance of bonds lodged with the CMU

For more details, please refer to the Related Information section below or contact us at cmuenquiry@hkma.gov.hk.

Securities Lending Programme for Eligible CMU Instruments and Government Bonds

Eligible Instruments

Eligible Instruments are CMU Instruments and Government Bonds issued under the institutional and retail tranches of the Government Bond Issuance Programme arranged by the MA.

The issue size of each of those eligible CMU Instruments must be of or over HK$500 million equivalent and have at least one CMU Participant who has agreed to act as the Market-Maker of the issue.

Eligible Participants (Borrowers)

A CMU Participant, who is also a Market Maker

Eligible Collateral

Borrowers shall be required to provide Collateral. Only Exchange Fund Bills and Notesare eligible Collateral.

*For details of all collateral management services provided by CMU, please refer to the Reference Manual.

Related Information