The Zhitong Finance App learned that on October 23, the Hong Kong Monetary Authority (HKMA) announced the designation of 12 banks as Tier 1 liquidity providers for the Hong Kong offshore RMB market for a period of two years, effective October 27, 2026 after the end of the current designated period, and an increase in the total amount of RMB liquidity that can be provided under the Tier 1 Liquidity Provider Arrangement.
The 12 Tier 1 liquidity providers include 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) Limited, Citibank, Deutsche Bank, Hang Seng Bank Limited, Hong Kong and Shanghai Banking Corporation Limited, Industrial and Commercial Bank of China (Asia) Limited, and Standard Chartered Bank (Hong Kong) Limited.
The selection of Tier 1 liquidity providers is based on a number of criteria, including the ability to provide offshore RMB capital and conduct bookmaker activities in the offshore RMB market, and a commitment to using Hong Kong as a global offshore RMB business hub. Once the above designation comes into effect, the total amount of RMB repurchase agreement arrangements for Tier 1 liquidity providers will increase from RMB 20 billion to RMB 22 billion. This expansion of the Tier 1 liquidity arrangement will enhance support for offshore RMB liquidity and help consolidate and enhance Hong Kong's position as an offshore RMB business hub.
The Hong Kong Monetary Authority reviews the operation of the scheme and the performance of Tier 1 liquidity providers from time to time, and considers whether improvements are needed, including adjusting the number of Tier 1 liquidity providers and the size of repurchase agreements.