Citi Joins Enhanced Northbound Repo Connect Scheme as Primary Liquidity Provider

Citi has joined the Hong Kong Monetary Authority (HKMA) and the People’s Bank of China (PBOC) in the enhanced offshore renminbi bond repurchase (repo) scheme as a primary liquidity provider, becoming the only US bank among the 11 participating dealers according to a story in The Trade news. The initiative, known as Northbound Repo Connect, allows eligible offshore investors to conduct repo transactions using mainland China interbank bonds held through Northbound Bond Connect.  First launched on 10 February 2025, the scheme represents an important step in developing the offshore RMB repo market and integrating it more closely with international standards. The enhancements to the scheme, which took effect on 25 August 2025, broadened its functionality by introducing multi-currency settlement – including Hong Kong dollars, US dollars and euros – and by allowing the rehypothecation of bond collateral.