BOC Hong Kong has started yuan securities sales and repurchase facilities in the city, The Wall Street Journal reports. The move will help improve intraday yuan liquidity management for banks with yuan businesses in the territory, increase the yuan’s liquidity in Hong Kong and facilitate prompt and efficient yuan settlements.
The company, which is the sole clearing bank for the yuan in Hong Kong, will launch the services through the city’s yuan clearing system. Yuan repos allow banks to sell selected yuan-denominated securities as collateral for yuan-denominated cash loans.
Click here for the story from The Wall Street Journal.