The Hong Kong Monetary Authority announced the official launch of the cross-boundary bond repurchase (repo) business, a joint initiative with the People’s Bank of China, the China Securities Regulatory Commission and the State Administration of Foreign Exchange. The new arrangement allows overseas institutional investors that already invest in China’s onshore bond market to conduct onshore repo transactions and remit the resulting RMB liquidity for offshore use. Mainland authorities simultaneously issued a notice to further support overseas institutional investors’ participation in the onshore repo market, explicitly covering Bond Connect investors. The HKMA positioned the measure as a follow-on to the offshore RMB repo business launched in February, with the two repo channels intended to complement each other for offshore investors’ asset allocation and liquidity management, support Hong Kong’s offshore RMB liquidity and reduce RMB funding costs.
Hong Kong Monetary Authority 2025-09-26
Hong Kong Monetary Authority and Mainland authorities launch cross-boundary bond repo opening onshore repos to overseas institutional investors
The Hong Kong Monetary Authority, with mainland authorities, launched a cross-boundary bond repurchase business, allowing overseas institutional investors to conduct onshore repo transactions and remit RMB liquidity offshore. This complements the earlier offshore RMB repo business, enhancing asset allocation and liquidity management for offshore investors, supporting Hong Kong's RMB liquidity, and reducing funding costs. Mainland authorities issued a notice to support overseas investors, including Bond Connect participants.