Chief Executive of the Hong Kong Monetary Authority (HKMA) Norman Chan said Monday that an intraday repo facility up to 10 billion yuan (about 1.62 billion U. S. dollars) for RMB participating banks in Hong Kong will be implemented in preparation for the imminent launch of the Shanghai- Hong Kong Stock Connect scheme.
Chan made the announcement when speaking at the Treasury Markets Summit 2014, jointly organized by the HKMA and the Treasury Markets Association (TMA), which was held here Monday.
The HKMA will also designate five to six banks as Primary Liquidity Providers (PLPs) for the offshore RMB market in Hong Kong, Chan said, adding that the PLPs will use and develop Hong Kong's platform to support their global offshore RMB business, and expand their market-marking activities in the CNH market.
The list of PLPs will be announced shortly, he said.
When talking about the upper limit of Hong Kong residents exchanging 20,000 yuan per day, the monetary head said the Chinese central bank is giving the green light and he hoped the limit would be lifted before the Shanghai-Hong Kong Stock Connect was put into effect. (1 U.S. dollar = 6.14 yuan)