HKMA Reports Smooth Debut of Offshore Yuan Repo Market

The HKMA offshore yuan repo market debut was completed smoothly with more than 60 transactions executed by at least 25 institutions, including HSBC, Hang Seng Bank, and Standard Chartered. The trades, worth over 3bn yuan (HKD3.27bn) equivalent, were settled in multiple currencies, including yuan, Hong Kong dollars, US dollars, and euros. Announced in July, the enhanced framework is designed to boost liquidity by enabling collateral reuse and cross-currency settlement. The HKMA said it will continue working with mainland regulators to expand the offshore yuan repo market and reinforce Hong Kong’s role as the world’s top offshore yuan hub.