The Hong Kong Monetary Authority will include government bonds and government financial bonds in the list of qualified collateral for the Renminbi starting today.

On February 26, the Hong Kong Monetary Authority announced that Chinese government bonds and policy financial bonds issued in mainland China will be added to the list of eligible collateral for the Renminbi liquidity arrangement. Banks have already started using these newly eligible collateral (including bonds held through the Northbound Bond Connect) to obtain Renminbi liquidity, and the transactions have been completed smoothly, with the liquidity arrangement operating as usual. The Hong Kong Monetary Authority noted that expanding the list of eligible collateral will help promote the opening of the financial markets in mainland China, as well as strengthen and enhance Hong Kong's status as an international financial center and a hub for offshore Renminbi business. The Hong Kong Monetary Authority will continue to monitor the use and operation of the liquidity arrangement.