Hong Kong Stock Exchange to launch RMB benchmark index

Hong Kong’s stock exchange wants to create a benchmark index for the yuan to try to spur offshore trading of the Chinese currency, which has suffered setbacks as China slowly liberalizes the flow of money in and out of the mainland, reports The Wall Street Journal. Hong Kong Exchanges and Clearing Ltd., the operator of the city’s stock and futures markets, and Thomson Reuters are looking at launching the first-of-its-kind index, which will track the value of the Chinese yuan against a basket of currencies made up of the U.S. dollar and several other major currencies. The index—which will be launched next month—will give traders a barometer of the yuan’s strength.