Cross-border bond repurchase business officially launched, Yu Weiwen: Helping to enhance the liquidity of the offshore RMB market in Hong Kong.

On September 26, the Hong Kong Monetary Authority officially launched the cross-border bond repurchase business jointly promoted by the People's Bank of China, China Securities Regulatory Commission, and State Administration of Foreign Exchange. The relevant mainland financial regulatory authorities jointly issued the "Notice on Further Supporting Overseas Institutional Investors to Conduct Bond Repurchase Business in the Chinese Bond Market," supporting all offshore institutions already in the onshore bond market to participate in onshore bond repurchase business, obtain Renminbi liquidity in the onshore market, and remit it overseas for use. The above measures are another important policy following the launch of offshore Renminbi bond repurchase business by the Hong Kong Monetary Authority in February this year, which will provide more stable liquidity for the Hong Kong offshore Renminbi market and effectively reduce Renminbi financing costs. Cross-border repurchase and offshore Renminbi repurchase businesses complement each other, meeting the asset allocation and liquidity management needs of offshore investors, revitalizing Renminbi bond holdings, and further enhancing the international attractiveness of onshore bonds, enhancing the Renminbi's investment and financing functions in the international market. Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, said he is pleased to officially launch the cross-border repurchase business. This is one of the key focuses of the continuous optimization of the "Bond Connect" business in close cooperation between the Hong Kong Monetary Authority and the People's Bank of China. The measures will help enhance the liquidity of the Hong Kong offshore Renminbi market, the willingness of overseas investors to allocate Renminbi assets, guide the development of more diversified offshore Renminbi businesses, and further consolidate and enhance Hong Kong's status as an international financial center and hub for offshore Renminbi business.