Official launch of enhancement arrangements for offshore RMB bond repurchase business

The enhancement arrangements for offshore RMB bond repurchase (repo) business was officially launched today (25 August).

In July 2025, the Hong Kong Monetary Authority (HKMA) announced enhancements to the offshore RMB repo business to support rehypothecation of bond collaterals (Note) and cross-currency repo (please refer to the HKMA press release).  The enhancements have been well received by the market.  The trading has been running orderly on the first trading day today. At least 25 financial institutions, including all the market makers, banks, securities firms, asset management companies and hedge funds, conducted more than 60 transactions amounting to an equivalent of over RMB3 billion in different settlement currencies including RMB, HKD, USD and EUR.

The HKMA will continue working with Mainland authorities and the industry to promote offshore RMB repo business, and create more policy headroom and an enabling environment for the development of Hong Kong’s offshore RMB market.

Hong Kong Monetary Authority
25 August 2025

Note: Bond collaterals can be re-used during the repo period in four specific use cases: (a) for re-use in offshore repo transactions; (b) as collateral for the HKMA’s RMB Liquidity Facility; (c) as margin collateral at OTC Clearing Hong Kong Limited (OTCC); and (d) for cash bond trading through Northbound Bond Connect.