Citi Hong Kong has been designated by The Hong Kong Monetary Authority (HKMA) as Primary Liquidity Provider (PLP) for the offshore RMB market in Hong Kong. The designation will allow Citi access to a dedicated repo facility of RMB2bn provided by the HKMA, to promote offshore Renminbi liquidity and facilitate Renminbi transactions for corporate customers and other financial institutions.
Citi is the first global bank approved to set up presence in the China (Shanghai) pilot free trade zone, and the firm is aiming at capitalising its position as one of the largest providers of market and investment solutions covering fixed income, equities, commodities and currencies, to retail, private bank clients, corporate and investors.
“This designation by the HKMA is recognition of Citi’s strong position in the CNH market, and underlines Citi’s robust liquidity and treasury management capability,” said Weber Lo, Citi Country Officer and CEO, Hong Kong & Macau . “This presents a unique opportunity for expanding our Renminbi businesses by harnessing the full potential of our global network.”
The HKMA expects this will help expand the offshore Renminbi market, bring new business opportunities to Hong Kong, and further strengthen Hong Kong’s role as the premier offshore Renminbi centre.
Citi also said this development will enhance the bank’s leading position in trading, capability in RMB payment, RMB cross-border business and strong market presence in custody services.