Bank of China (Hong Kong) plans interbank certificates of deposit issuance
Summary
Hong Kong’s sole yuan clearing bank is set to issue interbank negotiable certificates of deposit in the mainland market, marking a significant advancement in efforts by Chinese authorities to bolster the city’s position as a hub for yuan business. This initiative is part of coordinated efforts between mainland and Hong Kong officials to enhance the city’s status as a leading offshore yuan center by expanding funding channels and market connectivity. Notably, this development represents the first instance of an offshore yuan clearing bank obtaining a quota for onshore certificates, thereby supporting liquidity for yuan transactions.
Analysis
Hong Kong's sole yuan clearing bank: Bank of China (Hong Kong) Ltd. serves as Hong Kong’s designated clearing bank for yuan transactions, handling settlement and related financial services as an offshore subsidiary of Bank of China. It has held this role since 2003 and supports cross-border yuan flows between the mainland and Hong Kong. The bank’s plan to issue interbank negotiable certificates of deposit in the mainland market directly advances Chinese authorities’ push to bolster Hong Kong’s position as a yuan hub by improving offshore liquidity access. Yuan Hub Strengthening: Mainland and Hong Kong authorities continue coordinated efforts to enhance the city’s status as a leading offshore yuan center through expanded funding channels and market connectivity. Offshore Funding Access: This development marks the first time an offshore yuan clearing bank has obtained a quota for onshore negotiable certificates of deposit issuance, supporting liquidity for yuan business.
Categories
macropolitics
Related sources
- https://www.fxstreet.com/analysis/hong-kongs-rise-as-global-gold-hub-boosts-status-of-chinese-currency-202610132311
- https://www.boc.cn/english/whatsnew/news/202609/t20260922_25694963.html
- https://www.scmp.com/business/markets/article/3370617/hong-kong-expand-indices-derivatives-and-yuan-denominated-products-hkex-ceo
- https://www.sc.com/en/news/corporate-investment-banking/hong-kongs-next-phase-of-offshore-rmb-growth/
- https://www.hkicl.com.hk/eng/our_services/other_settlement_&_clearing_services/hk_mainland_china_cross_border_service.php
- https://www.bloomberg.com/news/articles/2026-10-14/hong-kong-s-clearing-bank-gains-new-funding-access-in-yuan-push
- https://www.hkicl.com.hk/eng/our_services/clearing_system_in_hong_kong/real_time_gross_settlement_system/renminbi_clearing_system_in_hong_kong.php
- https://www.businesstimes.com.sg/companies-markets/banking-finance/hong-kongs-clearing-bank-gains-new-funding-access-yuan-push