The Hong Kong Monetary Authority (HKMA) has designated 12 banks as Primary Liquidity Providers (PLPs) for Hong Kong’s offshore renminbi (RMB) market, also known as the CNH market.

With the new designations, the total RMB repo facility dedicated to the HKMA Primary Liquidity Providers will increase from RMB20 billion to RMB22 billion.

The appointments cover a two-year term, which begins on 27 October 2026 when the current term expires.

Banks named under the scheme include Agricultural Bank of China Limited, Bank of China (Hong Kong) Limited, Bank of Communications Co., Ltd., BNP Paribas, China CITIC Bank International Limited and China Construction Bank (Asia) Corporation Limited.

The list also includes Citibank, N.A., Deutsche Bank AG, Hang Seng Bank, Limited, The Hongkong and Shanghai Banking Corporation Limited (HSBC), Industrial and Commercial Bank of China (Asia) Limited (ICBC) and Standard Chartered Bank (Hong Kong) Limited.

The regulator based its selection on a range of criteria, including each institution’s capability to provide CNH funding and act as a market maker for CNH instruments.

It also took into account each bank’s commitment to using Hong Kong as a global hub for offshore RMB business.

According to the HKMA, the expansion of the PLP Scheme “will enhance liquidity support to the offshore RMB market and is conducive to strengthening the position of Hong Kong as the offshore RMB business hub”.

The authority regularly reviews the operation of the scheme and the performance of the PLPs.

As part of these reviews, it considers whether refinements are needed, including to the number of PLPs and the size of the repo facility.

Featured image: Edited by Fintech News Hong Kong, based on image by Hong Kong Monetary Authority (HKMA) via its website.