The Hong Kong Monetary Authority designated 12 banks as Primary Liquidity Providers for the city's offshore yuan market for a two-year term starting Oct. 27, according to a Friday press release.
The designated institutions include Agricultural Bank of China (HKG:1288, SHA:601288), Bank of China's (SHA:601988, HKG:3988) Hong Kong arm, Bank of Communications (HKG:3328, SHA:601328), BNP Paribas, China CITIC Bank (HKG:0998, SHA:601998), China Construction Bank (HKG:0939, SHA:601939) unit China Construction Bank (Asia), Citibank, Deutsche Bank, Hang Seng Bank (HKG:0011), HSBC (HKG:0005), Industrial and Commercial Bank of China's (SHA:601398, HKG:1398) Asia arm, and Standard Chartered's (HKG:2888) Hong Kong arm.
Selection was based on criteria such as each institution's capacity to provide offshore yuan funding and market-making for yuan instruments, and their commitment to developing Hong Kong as a global offshore yuan hub.
Following the designations, the total yuan repo facility dedicated to the liquidity providers will increase to 22 billion yuan from 20 billion yuan.
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