Hong Kong designates 12 banks as primary liquidity providers for yuan market
Hong Kong's central bank named 12 banks as primary liquidity providers for the offshore yuan market for two years from October 27, 2026, and increased the total yuan liquidity available under the arrangement to 220 billion yuan.
The Hong Kong Monetary Authority (HKMA) announced on Friday, October 23, that it has designated 12 banks as primary liquidity providers for the city's offshore renminbi market for a two-year term, effective from October 27, 2026. The HKMA also increased the total amount of yuan liquidity available under the primary liquidity provider arrangement.
The 12 designated banks are: Agricultural Bank of China Limited, Bank of China (Hong Kong) Limited, Bank of Communications Limited, BNP Paribas, China CITIC Bank (International) Limited, China Construction Bank (Asia) Corporation Limited, Citibank, Deutsche Bank, Hang Seng Bank Limited, Hongkong and Shanghai Banking Corporation Limited, Industrial and Commercial Bank of China (Asia) Limited, and Standard Chartered Bank (Hong Kong) Limited.
The selection of primary liquidity providers was based on multiple criteria, including their capacity to provide offshore yuan funds and conduct offshore yuan market-making activities, as well as their commitment to using Hong Kong as a global offshore yuan business hub. With the new designations, the total size of the yuan repurchase agreement arrangement under the primary liquidity provider scheme will increase from 20 billion yuan to 22 billion yuan.
The HKMA stated that the expansion of the primary liquidity arrangement will enhance support for offshore yuan liquidity and help consolidate and strengthen Hong Kong's position as an offshore yuan business hub. The authority added that it will regularly review the operation of the scheme and the performance of the primary liquidity providers, and consider whether adjustments are needed, including changes to the number of providers and the scale of the repurchase agreements.
