The new repo financing programme will facilitate repo financing transactions between members of Hong Kong’s Central Moneymarkets Unit (CMU) and international financial institutions.
The programem improves services currently provided to CMU members who will be able to accept a spectrum of international securities lodged with JP Morgan and other international securities depositaries as collateral.
In addition, international financial institutions, by entering into repo financing transactions with CMU members, will obtain access to liquidity for offshore CNY, EUR, HKD and USD in Hong Kong.
HKMA executive director of financial infrastructure department Esmond Lee said that with the launch of this repo financing program, the authority has taken a step forward in the development of Asia’s capital markets.
"Hong Kong will certainly benefit since this will help provide more local liquidity to market players in a secured manner and contribute to enhancing the financial stability of Hong Kong," Lee said.
