Bloomberg Launches New Solution to Facilitate Bond Connect Offshore RMB Bond Repurchase Trading in Collaboration with CFETS

Built on the connectivity between Bloomberg and CFETS, the new solution enables investors to electronically trade offshore RMB bond repurchases (repo) using Northbound Bond Connect bonds as collateral

Hong Kong, February 10, 2025 – Bloomberg today announced that it has collaborated with the China Foreign Exchange Trade System (National Interbank Funding Center) (“CFETS”) to launch a new solution [1] to facilitate offshore market participants’ RMB bond repurchase (repo) trading.

Following arrangements made by the Hong Kong Monetary Authority, Northbound Bond Connect participants are allowed to use eligible onshore bonds as collateral to conduct RMB repo business in Hong Kong, commencing today.

With the new solution, offshore investors can negotiate repo financing rates and execute transactions using eligible Northbound Bond Connect bonds as collateral with designated market makers in Hong Kong via the Bloomberg Terminal, which has had connectivity with CFETS since 2019. Authorized users can submit Request-for-Quote (RFQ) for repo and/or reverse repo through Bloomberg’s Electronic Repo Trading (BOLT REPO). The selected market makers respond with quotes via CFETS platform, completing the transaction upon confirmation.

“Launching the offshore repo arrangement is a thoughtful step to drive liquidity in offshore RMB market, and to strengthen Hong Kong’s position as a world-leading offshore RMB hub and financial center. It will also help accelerate global investors’ participation in China’s bond market over the long term,” said Bing Li, Head of Asia Pacific at Bloomberg. “Bloomberg is proud to utilize our technology to support Bond Connect investors as they conduct repo trades under the new arrangement without disruption to their current workflows.”

Bloomberg provides a range of powerful trading and trade-related solutions globally. Recognized by the People’s Bank of China, Bloomberg offers various solutions for mutual market access schemes between Hong Kong and mainland China, including Bond Connect and Swap Connect, to support cross-border investment. It also provides a full suite of data, information and solutions for global investors to access China’s financial markets. For more information, please visit RMB<GO> in the Bloomberg Terminal.

[1] The solution for offshore RMB bond repo business is provided by Bloomberg Tradebook Hong Kong Limited.

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