China CITIC Bank Int’l, Hang Seng Bank supports offshore RMB repo reforms

CNCBI has completed the first batch of transactions, it said.

China CITIC Bank International (CNCBI) and Hang Seng Bank have expressed their support for the official launch of the offshore RMB bond repurchase business enhancement arrangements.

In a press release, CNCBI said that it has successfully completed the first batch of transactions under the roof of offshore RMB bond repurchase business using bonds held under Northbound Bond Connect as collateral for various customers.

The enhanced arrangements widen capital flexibility for offshore investors by enabling lower financing costs, said Chao Li, deputy head of treasury & markets group and head of global markets, treasury & markets group, CNCBI.

It will also help attract more international investors to mainland China’s bond market, which in turn will facilitate the internationalisation of RMB and onshore bonds, Li said.

Meanwhile, Hang Seng Bank’s head of markets and securities service, Liz Chow, said that the enhancements improve market access, meet the growing demand for diversified financial solutions, and promote efficient collateral utilisation alongside better liquidity management.

Hang Seng Bank said that it has expanded its repo business to include both banks and non-banking financial institutions (NBFIs), achieving a transaction volume of RMB500m.