China and Hong Kong Broaden Investment and Financing Links
- Measures to expand repo market and HKMA’s liquidity facility
- Policies will support HK’s role as an offshore yuan center
Paul Chan in Hong Kong on Jan. 24.
Photographer: Lam Yik/BloombergThis article is for subscribers only.
Hong Kong announced several measures to deepen financial links with China — including facilitating real estate purchases and expanding the Wealth Connect program — to further integrate the city with the mainland.
Financial Secretary Paul Chan and other Hong Kong officials outlined six new measures on Wednesday, including opening China’s onshore repo market and allowing bonds issued by the Chinese state as well as its policy banks as qualified collateral for the Hong Kong Monetary Authority’s Renminbi Liquidity Facility. Regulators also agreed to allow greater sharing of creditor information to facilitate cross border financing and to deepen the program for the digital yuan, according to joint statements.