Hong Kong offshore RMB liquidity provider scheme

The Hong Kong Monetary Authority (HKMA) has implemented enhancements to its Primary Liquidity Provider (PLP) scheme to bolster Hong Kong’s position as a global offshore renminbi (RMB) hub.

As part of this initiative, the HKMA has increased the total RMB repo facility available to designated providers from RMB20 billion to RMB22 billion. This expanded liquidity line, valued at approximately US$3.1 billion, is set for a two-year mandate beginning in October 2026.

The scheme involves 12 selected banks: six Chinese institutions, including Bank of China (Hong Kong) and Industrial and Commercial Bank of China (Asia), and six international banks, including HSBC, Citibank, BNP Paribas, Deutsche Bank, and Standard Chartered Bank (Hong Kong). Deutsche Bank has been specifically designated as a PLP for the two-year term.

Selection for these roles was based on a bank’s ability to lend yuan in the offshore market, their willingness to quote prices for yuan-denominated instruments, and a commitment to utilizing Hong Kong as a global transaction hub.