China Opens Repo Market to Overseas Banks in Push on Yuan Usage
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China opened a market for short-term loans to foreign banks, giving them access to cheaper yuan funding as policy makers encourage greater global use of the currency.
All overseas yuan clearing and settlement banks that participate in the interbank bond market can conduct repurchase agreements and move the funds abroad, the People’s Bank of China said in a statement on Wednesday. There are 107 offshore lenders that can exchange debt with their local counterparts and the change will make repos possible for most of them, including HSBC Holdings Plc and Standard Chartered Plc.