Haitong Securities to run first HK RMB fund

Hong Kong’s Securities and Futures Commission has approved the first renminbi-denominated fund in the special administrative region, the Wall Street Journal reported. Operated by the Hong Kong unit of Haitong Securities (600837.SH), the fund comes shortly after Beijing and Hong Kong signed an agreement to lift some limitations on the use of the renminbi in Hong Kong. Haitong Securities said the new fund will target renminbi-denominated fixed-income products. As Hong Kong’s position as an offshore renminbi center strengthens, it is expected to attract up to US$14.7 billion in renminbi-denominated bank deposits in 2010. Hong Kong began taking renminbi deposits in 2004.