PBOC Deputy Governor Tao Ling said on Oct. 16 at the Global Wealth Management
Forum in Shanghai that the central bank will continue supporting financial
institutions’ offshore RMB lending and cross-border trade finance to better meet
offshore RMB liquidity needs. The PBOC will refine bank cross-border interbank
RMB financing rules, encourage more offshore institutions to issue and trade
panda bonds, and support Hong Kong’s dim sum bond market to broaden liquidity
and risk-management tools. Building on existing offshore RMB bond repo and
cross-border repo operations, it will push development of the repo and
derivatives markets, product innovation and mechanism upgrades, support clearing
banks’ liquidity-provision role in offshore markets, and use currency-swap
mechanisms to establish regular swap-funding arrangements with additional
eligible countries and regions.
