The Bank of Korea and the Ministry of Economy and Finance announced on the 26th that they have selected 11 banks, including KB Kookmin Bank and Shinhan Bank, as market makers for the won-yuan direct trading market next year.
Among domestic banks, six banks were selected: Kookmin Bank, Shinhan Bank, Woori Bank, Industrial Bank of Korea, Hana Bank, and Korea Development Bank. The foreign bank branches include five banks: Bank of Communications, China Construction Bank, Industrial and Commercial Bank of China, Bank of China, and Hongkong and Shanghai Banking Corporation.
The selected banks will continuously quote bid and ask prices in the won-yuan direct trading market, leading price formation and providing liquidity to the market.
The Bank of Korea and the Ministry of Economy and Finance stated that the selection was based on factors such as transaction performance in the won-yuan direct trading market, compliance with market maker quoting obligations, and the scale of customer transactions.
The Bank of Korea said, "The market maker system has greatly contributed to the successful establishment of the won-yuan direct trading market, and it is expected to play an important role in the future development of the market and the enhancement of yuan utilization."
The Bank of Korea and the government plan to promote the stable maintenance and qualitative development of the won-yuan direct trading market through policy support and other measures.
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