HONG KONG, Jan. 27 (Xinhua) -- Bank of China (Hong Kong) launched Wednesday a market-making mechanism for repo business of bills of the People's Bank of China (PBOC), a move to further improve trading and usage of such bills in the secondary market here.
Under the mechanism, overseas investors are offered repo and reverse repo services for the central bank bills at market prices, the bank said in a statement, adding that it set up the mechanism with its own renminbi funding.
The bank believes the mechanism will help promote the development of the offshore renminbi bond repo market, expand the scope of usage of the PBOC bills, and enhance the liquidity of the secondary market in Hong Kong.
The PBOC started to issue renminbi bills on a scheduled and market-based basis in the offshore renminbi market in Hong Kong in 2020, providing overseas investors with a stable and high-quality investment channel. Enditem
A single purchase
