RMB Clearing Market News

Further Extension of Clearing Service Hours by Clearing Bank from October 2014 Onwards

Effective from 1 October 2014, the Hong Kong RMB Clearing Bank ("CB") have further extended the RMB clearing service hours to cover the office hours in Europe, America, and Asia. The service runs from 8:30 am to 5:00 am the following day (Monday to Friday, Hong Kong Time). Under this arrangement, the Clearing Bank will be able to offer real-time clearing services in different time zones, allowing Participating Banks in Europe and the United States to conduct real-time RMB business transactions through the RMB Real Time Gross Settlement ("RTGS") System in Hong Kong during their office hours, thus reducing the settlement risk exposure of their funds and facilitating the development of offshore RMB business.

Smooth Transition by the Clearing Bank on the Migration to the PBOC China National Advanced Payment System 2 ("CNAPS 2")

On 22 September, the Clearing Bank successfully migrated to the CNAPS 2, achieving a smooth transition of cross-border RMB clearing service with enhanced system.

Relaxation on Position Squaring with the Clearing Bank from September 2015 Onwards

With reference to the letter from People’s Bank of China dated 13 August 2015 regarding the relaxation on position squaring, Participating Banks could make foreign exchange spot transaction with Renminbi Clearing Bank on their positions under cross-border goods trade, service trade and direct investment with effect from 1 September 2015.

List of Eligible Securities for Intra-day Repo Facilities

Eligible collaterals accepted by the Clearing Bank include:

  • Exchange Fund Bills and Notes (“EFBN”)

  • HKSAR Government bonds (“HKGB”)

  • RMB denominated bonds issued in Hong Kong and London by the Ministry of Finance of the People’s Republic of China (“CMOF”)

  • RMB denominated bonds issued in Hong Kong by policy banks of the People’s Republic of China, including Agricultural Development Bank of China, China Development Bank, and Export and Import Bank of China

  • RMB denominated bills issued in Hong Kong by the People’s Bank of China