Hong Kong and international investors on Monday started to use offshore yuan funds to trade yuan-denominated shares of 24 listed companies in the city, marking a major landmark in the internationalisation of the Chinese currency, reports the South China Morning Post. Some RMB 9.5 billion ($1.3 billion) of shares changed hands in early trading Monday morning, when bourse operator Hong Kong Exchanges and Clearing (HKEX) kicked off the dual counter model, which allows 24 firms to have yuan share trading counters in addition to their Hong Kong dollar counters. The group includes AIA Group, Tencent Holdings, Xiaomi, Meituan and the Post’s owner Alibaba Group Holding.
Financial Secretary Paul Chan Mo-po, alongside HKEX chairwoman Laura Cha May-lung and CEO Nicolas Aguzin, sounded the ceremonial gong in the Connect Hall, which was the exchange trading hall before 2017.
The approval for Hong Kong stocks to be tradeable in the local dollar and yuan “comes at a time of [rising] strategic importance of the renminbi in flows, liquidity and popularity,” Chan said during a launching ceremony attended by hundreds of brokers, banks and executives. “Hong Kong will play a pivotal role in this change, and we are keen to grasp the opportunities ahead [because Hong Kong] has long been the offshore renminbi trading hub in terms of liquidity, trade settlement or product variety.”
You must log in to post a comment.