The Monetary Authority has designated seven banks as Primary Liquidity Providers for the offshore renminbi market in Hong Kong.
They are the Bank of China (Hong Kong), BNP Paribas, China Construction Bank (Asia), Citibank N.A., Hongkong & Shanghai Banking Corporation, Industrial & Commercial Bank of China (Asia), and Standard Chartered Bank (Hong Kong).
The designation is for a two year term.
The authority also announced the provision of renminbi intraday liquidity to Authorised Institutions participating in RMB business in Hong Kong with effect from November 10.
It will give banks greater flexibility in managing their payment flows upon the launch of the Shanghai-Hong Kong Stock Connect.
The authority's Chief Executive Norman Chan said these two measures will reinforce the status of Hong Kong as the global hub for offshore RMB business.
