Categories: Forex News

Hong Kong to increase yuan commerce finance, Bond Join schemes, HKMA says


HONG KONG (Reuters) – Hong Kong will launch a brand new yuan-denominated commerce finance scheme and increase the hours and scope of its Bond Join program for mainland China traders, Eddie Yue, Chief Govt of the Hong Kong Financial Authority mentioned on Monday.

The announcement got here alongside others made by China’s central financial institution Governor Pan Gongsheng at a enterprise convention, together with pledges to assist Hong Kong present low-cost yuan funding within the territory and measures to assist the yuan, which has slid to 16-month lows.

Beijing will assist Hong Kong within the launch of the commerce finance scheme utilizing 100 billion yuan ($13.64 billion) in forex swaps for one, three and 6 months, Yue, chief of Hong Kong’s defacto central financial institution, informed reporters on the sidelines of the Asia Monetary Discussion board in Hong Kong.

The 2 central banks have a forex swap association for a complete 800 billion yuan.

Beneath the brand new facility, banks can trade their Hong Kong {dollars} for yuan funding with the HKMA at rates of interest linked to onshore charges, offering banks in Hong Kong with a steady supply of comparatively lower-cost yuan funds, Yue mentioned.

Yue mentioned the settlement deadline for the Bond Join scheme shall be prolonged to 4:30 p.m. (0830 GMT) and expanded to incorporate U.S. greenback and euro-denominated bonds, in addition to yuan bonds.

The HKMA may even promote yuan repurchase agreements, permitting worldwide traders to make use of onshore bonds as collateral for yuan funds in Hong Kong, from Feb. 10, he mentioned.

($1 = 7.3316 Chinese language yuan renminbi)

admin

Recent Posts

Gold hits all-time excessive as Trump’s tariff plans stir inflation worries

By Anjana Anil and Anushree Mukherjee (Reuters) - Gold costs hit a file peak on…

7 hours ago

‘They must provide you with one other mannequin’: For a lot of the BBC licence payment enhance is a foul joke

For individuals who're on modest means, the price of the licence payment going up by…

8 hours ago

Trump commerce struggle: Why a determine of 48% is essential as escalation nears

Here's a quantity to lodge in your mind within the coming weeks and months: 48%.Final…

8 hours ago

Oil costs ease on commerce struggle considerations, regardless of threats to Russian provide

By Laila Kearney (Reuters) - Oil costs dipped barely on Tuesday as worries in regards…

10 hours ago

Value of residing calculator: See how a lot your payments are going up

Households throughout the nation face larger payments from 1 April. Use our calculator to learn…

10 hours ago

Elon Musk’s dad says Tesla protesters are ‘bums’

Elon Musk's father has advised Sky Information that protesters focusing on his son's cost-cutting work…

10 hours ago