Hong Kong regulator unveils list of CNH Primary Liquidity Providers

Maria Nikolova

The HKMA has designated nine institutions as Primary Liquidity Providers for offshore renminbi market in Hong Kong.

The Hong Kong Monetary Authority (HKMA) announces today that it has designated nine authorized institutions as Primary Liquidity Providers (PLPs) for offshore renminbi (RMB) market in Hong Kong (i.e. CNH market) for another term of two years, with effect from October 27 2018. This follows the expiry of their current 2-year term of designation.

The list includes the following institutions:

  • Agricultural Bank of China Limited;
  • Bank of China (Hong Kong) Limited;
  • Bank of Communications Co., Ltd;
  • BNP Paribas;
  • China Construction Bank (Asia) Corporation Limited;
  • Citibank, N.A.;
  • Hongkong and Shanghai Banking Corporation Limited;
  • The Industrial and Commercial Bank of China (Asia) Limited;
  • Standard Chartered Bank (Hong Kong) Limited.

The HKMA explains that it has reviewed the performance of these nine PLPs in the past two years, and considers that they are all active participants in the CNH market, and have been effectively providing CNH funding and making market for CNH instruments, as well as using the Hong Kong platform as a global hub for offshore RMB business.

The HKMA will continue to provide each of the PLPs with a dedicated RMB repo facility of RMB2 billion, in order to facilitate their liquidity management when they carry out market-making activities and provide liquidity in the CNH market. The HKMA will also continue to regularly review the experience in operating the scheme.

The Hong Kong financial services landscape is developing swiftly, with a new business model of virtual banking being in the works. In May, the HKMA issued revised guidelines for the authorisation of virtual banks. The HKMA aims to start granting licences to virtual banks by the first quarter of next year. Chinese financial technology company 9F Group is reported to be among those seeking a virtual banking license in Hong Kong. In June this year, Standard Chartered Bank (Hong Kong) Limited unveiled its plans to apply for a virtual banking license in Hong Kong.

The concept of “virtual banks” is becoming more popular in Hong Kong, according to a recent survey, which was conducted during the second half of June 2018 and covered 811 local SMEs. The study shows that whereas 46% of surveyed SMEs have heard about “Virtual Bank”, 23% are reluctant to adopt virtual banking service. For those interested in using the service, “Cybersecurity” (77%) and “System stability” (61%) are the key factors in service selection.

Read this next

Digital Assets

Centralized exchanges are 10 times more popular than DEXs in Western Europe

Western European traders are found to prefer centralized exchanges over decentralized ones as CEX traffic outpaces DEXs by a factor of ten.

Market News

Stock Market Analysis: Is NVDA Losing Its Leadership?

Since the beginning of the week, the S&P 500 Index (US500) has seen a modest increase of about 0.58%, whereas NVDA’s share price has experienced a decline of approximately 3.8%. This recent divergence raises concerns among Nvidia stock investors — could it signify a loss of NVDA’s market leadership?

Industry News

ESG: Australian regulator wins first greenwashing court case against Vanguard

Vanguard admitted that a notable portion of the securities within both the Index and the Fund did not undergo the promised ESG scrutiny.

Fintech, Uncategorized

BitMEX integrates HALO from Solidus Labs for cross-market surveillance

““The recent approval of the Spot Bitcoin ETF has piqued the market’s interest. As a result of price volatility, the trading volumes for crypto derivatives have gone up substantially. HALO, with its advanced technology and crypto-native detection architecture, will enable BitMEX to smoothly and safely scale trade surveillance across its increased trading volumes and provide the necessary safeguards for new product launches.”

Reviews

IUX Broker Review

IUX, recently rebranded from IUX Markets, stands as a multi-asset Forex broker recognized for its regulatory compliance across various jurisdictions.

Industry News

Horizon Software rebrands to Horizon Trading Solutions

“Horizon Trading Solutions has seen accelerated global growth over the past year to meet the rising demand for our trading solutions and built-for-purpose technology offering. The choice to rebrand represents a key part of this development, while maintaining our heritage and history in the industry.”

Market News

USDJPY has surged to levels last witnessed in 2022. Should we consider opening a short position?

The recent resurgence of the US dollar has propelled USD/JPY to new heights, touching levels not seen since 2022. This surge comes against the backdrop of stable short-term yields and ongoing economic data that fails to signal a significant slowdown, prompting questions about the extent of current monetary easing measures.

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

Digital Assets

BlockDAG Presale Nears $10 Million Amid Toncoin’s Momentum, Green Bitcoin’s Presale, and the Rise of Other Top Cryptos

This article will examine three top trending topics: Toncoin’s potential, Green Bitcoin’s innovative presale, and BlockDAG’s sustainable mining approach. These cryptocurrencies take centre stage for their uniqueness and innovation.

<