US-headquartered bank Citi will participate in the enhanced offshore RMB bond repurchase ( repo ) scheme, an initiative by the Hong Kong Monetary Authority ( HKMA ) and the People’s Bank of China ( PBoC ).

This strategic move further solidifies, Citi says, its commitment to fostering financial market innovation, supporting its global client base and enhancing liquidity across the Greater China region.

The bank’s inclusion as a primary liquidity provider in this scheme underscores its role at the forefront of financial market development in the region.

Leveraging its global network and deep expertise in cross-border financial solutions, the bank is uniquely positioned to assist clients in navigating the evolving opportunities presented by China’s opening capital markets. This initiative provides an important tool for global investors to manage their RMB portfolios more effectively, thereby enhancing market liquidity and stability.

Citi remains an active participant in key cross-border initiatives, including Stock Connect and Bond Connect, providing leading solutions that benefit its diverse client base and contribute to the robust development of the region’s financial infrastructure.

“The new enhancement feature from HKMA provides greater flexibility and aligns with global repo market standards,” notes Paul Smith, the bank’s head of markets for Japan, Asia North and Australia. “This enhancement reinforces Hong Kong’s unique role as a key connector between mainland China and international markets. As the only US bank among the 11 dealers, we are committed to supporting the offshore term repo market with our scalable balance sheet.”