HONG KONG Jan 6 The Hong Kong Monetary
Authority's (HKMA) 10 billion yuan ($1.45 billion) quota for
intra-day yuan funding has nearly been used up on Friday
morning, according to Reuters data.
By 11 a.m local time (0300 GMT), 9.95 billion yuan of the
quota had been utilised.
Offshore yuan funding has become extremely difficult in the
new year as tight liquidity has pushed up short-term rates. The
overnight implied yuan deposit rate surged to 112 percent on
The HKMA rolled out the intra-day repurchase facility to
meet increasing demand for the Chinese currency ahead of the
Shanghai-Hong Kong stock connect scheme in 2014.
($1 = 6.8898 Chinese yuan)
(Reporting by Michelle Chen; Editing by Jacqueline Wong)