HSBC facilitates first trades under HKMA鈥檚 offshore bond connect repo business
26 August 2025 Hong Kong
Image: Timon/stock.adobe.com
HSBC has begun to support a number of banks, securities firms, and hedge funds in completing the first trades leveraging the enhanced arrangements under the offshore bond connect repo business, launched by the Hong Kong Monetary Authority (HKMA).
The bank has assisted its global clients in the completion of cross-currency repo transactions in US dollars, euros, and Hong Kong dollar funding, in addition to offshore Chinese yuan repo trades, using onshore bonds held via Northbound Bond Connect as collateral.
HSBC has also facilitated the rehypothecation of bond collaterals for CITIC 网爆吃瓜 International Capital Management (CLSA), allowing the re-use of bonds gained from repo trades by effectively posting them as non-cash margin collateral for swap connect transactions cleared through Hong Kong Exchanges and Clearing (HKEX) OTC Clear.
Cheuk Wong, head of markets and securities services at HSBC in Hong Kong, states: 鈥淲ith the expansion of the repo connect scheme and increased participation from global investors, we鈥檙e excited to facilitate these maiden trades for our clients and to support market development as the Bond Connect Repo market converges towards international market practices.
鈥淲e believe these enhancements offer significant utility and will be highly welcomed by offshore investors.鈥�
Referring to the new arrangements, CLSA says that they can 鈥渘ow more efficiently use onshore China bonds as collateral and finance various currencies including CNH and USD鈥�.
The bank has assisted its global clients in the completion of cross-currency repo transactions in US dollars, euros, and Hong Kong dollar funding, in addition to offshore Chinese yuan repo trades, using onshore bonds held via Northbound Bond Connect as collateral.
HSBC has also facilitated the rehypothecation of bond collaterals for CITIC 网爆吃瓜 International Capital Management (CLSA), allowing the re-use of bonds gained from repo trades by effectively posting them as non-cash margin collateral for swap connect transactions cleared through Hong Kong Exchanges and Clearing (HKEX) OTC Clear.
Cheuk Wong, head of markets and securities services at HSBC in Hong Kong, states: 鈥淲ith the expansion of the repo connect scheme and increased participation from global investors, we鈥檙e excited to facilitate these maiden trades for our clients and to support market development as the Bond Connect Repo market converges towards international market practices.
鈥淲e believe these enhancements offer significant utility and will be highly welcomed by offshore investors.鈥�
Referring to the new arrangements, CLSA says that they can 鈥渘ow more efficiently use onshore China bonds as collateral and finance various currencies including CNH and USD鈥�.
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