English
CMU supports offshore RMB bond repurchase business using bonds held under Northbound Bond Connect as collateral
The Central Moneymarkets Unit (CMU) began its support today (10 February) for Northbound Bond Connect participants to use onshore bonds, held under Northbound Bond Connect, as collateral to conduct offshore RMB bond repurchase (repo) business in Hong Kong. This arrangement was jointly announced on 13 January 2025 by the Hong Kong Monetary Authority (HKMA) and the People’s Bank of China (see the HKMA press release).
Since the issuance of the CMU member circular on 27 January 2025 regarding the detailed operational arrangements, the enhanced CMU Triparty Repo service has been well received by market participants. On the first day of the service launch, the usage and operation of the CMU Triparty Repo service were smooth.
CMU will continue to support the development of offshore RMB market in Hong Kong and the use of Mainland Chinese bonds as widely accepted collateral in international markets.
Since the issuance of the CMU member circular on 27 January 2025 regarding the detailed operational arrangements, the enhanced CMU Triparty Repo service has been well received by market participants. On the first day of the service launch, the usage and operation of the CMU Triparty Repo service were smooth.
CMU will continue to support the development of offshore RMB market in Hong Kong and the use of Mainland Chinese bonds as widely accepted collateral in international markets.
