Citi participates in enhanced Northbound Repo Connect Scheme
03 September 2025 Greater China
Image: ÎÄÆÕ Íõ/stock.adobe.com
Citi confirms its participation in the enhanced offshore renminbi bond repo scheme, an initiative by the Hong Kong Monetary Authority (HKMA) and the People's Bank of China (PBOC).
According to the firm, it solidifies Citi's commitment to fostering financial market
innovation, supporting its global client base, and enhancing liquidity and stability across the Greater China region ¡ª for which it has been present for 123 years.
The company will act as primary liquidity provider in this scheme, and will assist clients in navigating the evolving opportunities presented by China's opening capital markets.
Paul Smith, head of markets for Japan, Asia North, and Australia, Citi, says: ¡°We are excited about the new enhancement feature from HKMA, which provides greater flexibility and aligns with global repo market standards.
¡°This enhancement reinforces Hong Kong¡¯s unique role as a key connector between mainland China and international markets.¡±
The Northbound Repo Connect Scheme, initially launched on 10 February 2025, allows eligible offshore investors to engage in repo transactions using mainland China interbank bonds held via Northbound Bond Connect.
The scheme's recent enhancements aim to bring increased flexibility by supporting multi-currency settlements ¡ª including Hong Kong dollars, US dollars, and euros.
Further, Citi says it will allow rehypothecation of bond collateral, aligning with global repo market best practices and enriching offshore renminbi liquidity management tools.
Smith adds: ¡°We have observed increased interest from both local and international clients and have traded a number of times in the past few days, which will further strengthen
Citi's business growth across our Hong Kong and China franchise.
¡°As the only US bank among the 11 dealers, we are committed to supporting the offshore term repo market with our scalable balance sheet.¡±
According to the firm, it solidifies Citi's commitment to fostering financial market
innovation, supporting its global client base, and enhancing liquidity and stability across the Greater China region ¡ª for which it has been present for 123 years.
The company will act as primary liquidity provider in this scheme, and will assist clients in navigating the evolving opportunities presented by China's opening capital markets.
Paul Smith, head of markets for Japan, Asia North, and Australia, Citi, says: ¡°We are excited about the new enhancement feature from HKMA, which provides greater flexibility and aligns with global repo market standards.
¡°This enhancement reinforces Hong Kong¡¯s unique role as a key connector between mainland China and international markets.¡±
The Northbound Repo Connect Scheme, initially launched on 10 February 2025, allows eligible offshore investors to engage in repo transactions using mainland China interbank bonds held via Northbound Bond Connect.
The scheme's recent enhancements aim to bring increased flexibility by supporting multi-currency settlements ¡ª including Hong Kong dollars, US dollars, and euros.
Further, Citi says it will allow rehypothecation of bond collateral, aligning with global repo market best practices and enriching offshore renminbi liquidity management tools.
Smith adds: ¡°We have observed increased interest from both local and international clients and have traded a number of times in the past few days, which will further strengthen
Citi's business growth across our Hong Kong and China franchise.
¡°As the only US bank among the 11 dealers, we are committed to supporting the offshore term repo market with our scalable balance sheet.¡±
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