Citi reinforces commitment to Greater China financial markets

Citi today announced its participation in the enhanced offshore RMB bond repurchase (Repo) scheme, an initiative by the Hong Kong Monetary Authority (HKMA) and the People's Bank of China (PBOC).

This strategic move further solidifies Citi's commitment to fostering financial market innovation, supporting its global client base, and enhancing liquidity across the Greater China region. It also underscores Citi's deep-rooted presence, marking its 123rd year in Greater China.

Citi's inclusion as a primary liquidity provider in this scheme underscores its role at the forefront of financial market development in the region. Leveraging its global network and deep expertise in cross-border financial solutions, Citi is uniquely positioned to assist clients in navigating the evolving opportunities presented by China's opening capital markets. This initiative provides a new, important tool for global investors to manage their RMB portfolios more effectively, thereby enhancing market liquidity and stability.

“We are excited about the new enhancement feature from HKMA, which provides greater flexibility and aligns with global repo market standards. This enhancement reinforces Hong Kong’s unique role as a key connector between mainland China and international markets,” said Paul Smith, head of markets for Japan, Asia North and Australia, Citi.

“We have observed increased interest from both local and international clients and have traded a number of times in the past few days, which will further strengthen Citi's business growth across our Hong Kong and China franchise. As the only US bank among the 11 dealers, we are committed to supporting the offshore term repo market with our scalable balance sheet.”

The Northbound Repo Connect Scheme, initially launched on 10 February 2025, allows eligible offshore investors to engage in repo transactions using mainland China interbank bonds held via Northbound Bond Connect. The scheme's recent enhancements, effective 25 August 2025, bring increased flexibility by supporting multi-currency settlements (including HKD, USD, and EUR) and allowing rehypothecation of bond collateral, aligning with global repo market best practices and significantly enriching offshore Renminbi liquidity management tools.

Citi remains an active participant in key cross-border initiatives, including Stock Connect and Bond Connect, providing leading solutions that benefit its diverse client base and contribute to the robust development of the region’s financial infrastructure.

Re-disseminated by  Wealth and Society