HONG KONG (Reuters) – Hong Kong will launch a brand new yuan-denominated commerce finance program and develop the timing and scope of its Bond Join program for mainland Chinese language buyers, Eddie Yue, chief government of the Hong Kong Financial institution, mentioned on Monday. Hong Kong Financial Authority.
The announcement provides to others made by China's central financial institution governor Pan Gongsheng at a enterprise convention, together with pledges to assist Hong Kong present low cost yuan financing to the territory and measures to assist the yuan, which has fallen to its lowest stage in 16 months.
Beijing will assist Hong Kong in launching the commerce finance program utilizing 100 billion yuan ($13.64 billion) in forex swaps for one, three and 6 months, mentioned Yue, head of China's central financial institution. de facto Hong Kong, to journalists on the sidelines of the Asia convention. Monetary Discussion board in Hong Kong.
The 2 central banks concluded a forex swap settlement for a complete quantity of 800 billion yuan.
Beneath the brand new facility, banks can change their Hong Kong {dollars} for yuan funding from the HKMA at rates of interest linked to home charges, offering Hong Kong banks with a secure supply of funds in comparatively inexpensive yuan, Yue mentioned.
Yue mentioned the Bond Join program's settlement deadline can be prolonged to 4:30 p.m. (08:30 GMT) and expanded to incorporate bonds denominated in U.S. {dollars} and euros, along with yuan bonds.
The HKMA may even encourage yuan repurchase agreements, permitting worldwide buyers to make use of onshore bonds as collateral for his or her yuan funds in Hong Kong, beginning Feb. 10, it mentioned.
($1 = 7.3316 renminbi)
