HONG KONG, Feb 10, 2025 - (ACN Newswire) - The offshore RMB bond repurchase business using bonds held under Northbound Bond Connect as collateral (offshore repo arrangement) officially launched today. Guotai Junan International Holdings Limited ("GTJAI" or "the Company", stock code: 1788.HK), as one of the first Chinese securities firms in Hong Kong to participate in this business, successfully executed trade on the first day with strong support from HSBC as a market maker counterpart as well as custodian bank.
As an important platform for the interconnection between the capital markets of the Mainland and Hong Kong, Bond Connect has always been a key link for the opening-up and cooperation of financial markets. In January this year, the Hong Kong Monetary Authority and the People's Bank of China announced new measures to deepen financial cooperation between Hong Kong and the Mainland. Under the offshore repo arrangement, Northbound Bond Connect participants can use eligible onshore bonds as collateral to conduct RMB repurchase business in Hong Kong. The launch of this innovative business will further enhance the market-based arrangement for offshore RMB liquidity management and increase Hong Kong's competitiveness as an offshore RMB business hub.
GTJAI has been a participant in Northbound Bond Connect for a long time, engaging actively in related businesses. The Company won multiple awards in the 2024 Bond Connect Outstanding Participants and Individuals Selection, including " Northbound Bond Connect Outstanding Investor (Investment Banking Category)". GTJAI excelled in preparing for this repurchase business, ensuring smooth transactions on launch day through proactive coordination with qualified counterparties. This showcased GTJAI's strength in innovation and execution and its positive response to financial cooperation policies between Hong Kong and the Mainland.