Hong Kong’s clearing bank gains new funding access in renminbi push
It plans to issue up to US$3.3 billion worth of negotiable certificates of deposit in the mainland market this year
Hong Kong's sole renminbi-clearing bank, Bank of China (Hong Kong) (BOCHK), has secured authorization to issue up to US$3.3 billion in renminbi-clearing interbank negotiable certificates of deposit (NCDs) in the mainland market this year. The bank's plan, registered with the People's Bank of China (PBOC), seeks to bolster Hong Kong's role as a hub for renminbi business.
BOCHK's move is part of broader initiatives by Chinese and Hong Kong authorities to strengthen the city's status as a leading renminbi center and promote the currency's global standing. As the renminbi is not yet freely convertible, officials are working to ease the transition of onshore and offshore liquidity, facilitating yuan-denominated transactions abroad.
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