HKMA: Designates 12 Primary Liquidity Providers, Expands Size to RMB 22 Billion

On October 23, the Hong Kong Monetary Authority (HKMA) announced the designation of 12 banks as Primary Liquidity Providers (PLPs) for the Hong Kong offshore renminbi market for a two-year term, effective from October 27, 2026, upon expiry of the current designation period, and an increase in the total amount of renminbi liquidity that can be provided under the PLP arrangement. The 12 PLPs include Agricultural Bank of China Limited, Bank of China (Hong Kong) Limited, Bank of Communications Co., Ltd., BNP Paribas, China CITIC Bank International Limited, China Construction Bank (Asia) Corporation Limited, Citibank, Deutsche Bank, Hang Seng Bank Limited, The Hongkong and Shanghai Banking Corporation Limited, Industrial and Commercial Bank of China (Asia) Limited, and Standard Chartered Bank (Hong Kong) Limited. The selection of PLPs is based on a number of criteria, including the ability to provide offshore renminbi funding and conduct offshore renminbi market-making activities, as well as commitment to using Hong Kong as a global hub for offshore renminbi business. With effect from the above designations, the total amount of the renminbi repo agreement arrangement for PLPs will be increased from RMB 20 billion to RMB 22 billion. This expansion of the primary liquidity arrangement will enhance support for offshore renminbi liquidity and help consolidate and elevate Hong Kong's position as an offshore renminbi business hub. The HKMA reviews the operation of the scheme and the performance of the PLPs from time to time, and considers whether there is a need for optimization, including adjusting the number of PLPs and the size of the repo agreements.