The Hong Kong Monetary Authority has officially launched the enhancement arrangements for the offshore renminbi (RMB) bond repurchase (repo) business, bringing into effect previously announced measures that support rehypothecation of bond collateral and cross-currency repo. Trading on the first day ran orderly, with at least 25 financial institutions completing more than 60 transactions totalling the equivalent of over RMB3 billion across settlement currencies including RMB, HKD, USD and EUR. Under the rehypothecation enhancement, bond collateral can be re-used during the repo period for offshore repo transactions, as collateral for the HKMA’s RMB Liquidity Facility, as margin collateral at OTC Clearing Hong Kong Limited, and for cash bond trading through Northbound Bond Connect. The HKMA will continue working with Mainland authorities and the industry to promote offshore RMB repo business and support the development of Hong Kong’s offshore RMB market.
Hong Kong Monetary Authority 2025-08-25
Hong Kong Monetary Authority launches enhanced offshore RMB bond repo arrangements enabling rehypothecation and cross-currency repos
The Hong Kong Monetary Authority has launched enhancements for the offshore renminbi (RMB) bond repurchase business, enabling rehypothecation of bond collateral and cross-currency repo. On the first day, over 60 transactions totaling more than RMB3 billion were completed by at least 25 financial institutions. The HKMA will collaborate with Mainland authorities to further promote the offshore RMB repo market.