- Citi is joining the Hong Kong Monetary Authority and the People’s Bank of China’s enhanced offshore RMB bond repurchase (Repo) scheme as a Primary Liquidity Provider.
- This initiative allows global investors to manage their RMB portfolios more effectively, enhancing market liquidity and stability and aligned with global repo standards.
- Citi is the only US bank among 11 dealers, bringing its expertise in cross-border financial solutions and underscoring its unique position in the region.
Citi announced its participation in the enhanced offshore RMB bond repurchase (Repo) scheme, an initiative by the Hong Kong Monetary Authority (HKMA) and the People’s Bank of China (PBOC). Citi’s inclusion as a primary liquidity provider in this scheme underscores its role at the forefront of financial market development in the region.
The Northbound Repo Connect Scheme, initially launched on February 10, 2025, allows eligible offshore investors to engage in repo transactions using mainland China interbank bonds held via Northbound Bond Connect. The scheme’s recent enhancements bring increased flexibility by supporting multi-currency settlements (including HKD, USD, and EUR) and allowing rehypothecation of bond collateral, aligning with global repo market best practices and significantly enriching offshore Renminbi liquidity management tools.
Paul Smith, head of Markets for Japan, Asia North and Australia at Citi, said in a statement: “We have observed increased interest from both local and international clients and have traded a number of times in the past few days, which will further strengthen Citi’s business growth across our Hong Kong and China franchise. As the only US bank among the 11 dealers, we are committed to supporting the offshore term repo market with our scalable balance sheet.”