Regulatory Alerts2021-03-05
Added · Updated
Frequently Asked Questions on Enhanced Currency Conversion Arrangement under Bond Connect
The Hong Kong Monetary Authority issued these FAQs to clarify operational procedures for the Enhanced Currency Conversion Arrangement involving onshore RMB under Northbound Bond Connect. The document details the appointment of FX Settlement Banks, closed-loop fund flow requirements, and the monitoring of transactions to ensure they are underpinned by genuine investment needs. It further specifies reporting obligations, including the 15% difference threshold for notifications and specific timelines for submitting data via the Hong Kong Trade Repository.
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fx
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