Sat. Nov 28th, 2020

Regulation HK

Financial Regulator

HKMA Expands List of Eligible Collateral for RMB Facility

1 min read


Eligible collateral will include RMB, USD and EUR debt securities issued offshore by China’s central bank, Ministry of Finance or policy banks.

The HKMA (Hong Kong Monetary Authority) has expanded the list of eligible collateral that will be accepted for the RMB Liquidity Facility.

In a notice, the HKMA said eligible collateral will include RMB, USD and EUR denominated debt securities issued in offshore markets by:

  • PBOC (People’s Bank of China)
  • MOF (Ministry of Finance) of the People’s Republic of China
  • policy banks Agricultural Development Bank of China, China Development Bank, and Export and Import Bank of China

The above forms of collateral are also eligible for intraday, one-day and one-week repo.

Previously, in addition to exchange fund bill and notes and Hong Kong government bonds, the eligible collateral for the RMB Facility included:

  • RMB denominated debt issued in Hong Kong by PBOC, MOF or the policy banks
  • RMB denominated bonds issued in London by MOF
  • USD denominated bonds issued in Hong Kong by MOF

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