Hang Seng Bank announced the successful execution of multiple offshore RMB bond repurchase (repo) transactions today (10 February 2025), the first day of the offshore repo arrangement’s launch. These groundbreaking transactions leverage eligible onshore bonds held under the Northbound Bond Connect scheme as collateral and mark a key milestone in the continued development of offshore RMB liquidity. "As Hong Kong's largest domestic bank, Hang Seng is proud to be among the first banks to complete repo transactions," said Liz Chow, head of global markets at Hang Seng Bank. "This milestone offshore repo arrangement marks a significant step towards bolstering RMB liquidity using onshore bonds in Hong Kong. Today's groundbreaking transactions underscore Hang Seng's commitment to supporting the development of a market-driven framework for offshore RMB liquidity management, ultimately strengthening Hong Kong's position as a leading offshore RMB hub." The offshore repo arrangement is one of various new policy measures announced by the Hong Kong Monetary Authority (HKMA) and the People's Bank of China (PBoC) to strengthen links between financial markets in Hong Kong and the mainland. Hang Seng is designated by HKMA as a primary liquidity provider for the offshore repo arrangement. Re-disseminated by The Asian Banker
