Pilot scheme for Renminbi Clearing Bank and other eligible institutions outside the Mainland to invest in the Mainland's interbank bond market

The People's Bank of China (PBoC) promulgated today (Tuesday) a notice on a pilot scheme for the Renminbi (RMB) Clearing Bank and other eligible institutions outside the Mainland to make use of their RMB funds to invest in the Mainland's interbank bond market. The Hong Kong Monetary Authority (HKMA) welcomed the scheme.

Under the pilot scheme, the Clearing Bank and Participating Banks of RMB Business in Hong Kong can conduct trading in the Mainland's interbank bond market upon approval by the PBoC. The HKMA will liaise closely with the PBoC on the implementation of the scheme, and will issue a circular to authorized institutions on this matter.

The Chief Executive of the HKMA, Mr Norman Chan, said, "The launch of the scheme has opened up a channel for RMB funds and financial institutions in Hong Kong to invest in the Mainland. This will further promote the development of RMB trade settlement in Hong Kong, and enhance the attractiveness of RMB offshore business in Hong Kong."

Furthermore, under the scheme, central banks and monetary authorities outside the Mainland can also invest in the Mainland's interbank bond market. In this regard, Mr Norman Chan said, "The HKMA welcomes the new arrangement and will follow up with the PBoC accordingly."

For media enquiries, please contact:
Yokee Wong, Manager (Communications), at 2878 1213 or
Natalie Wu, Officer (Communications), at 2878 8246

Hong Kong Monetary Authority
17 August 2010