THE Shenzhen stock exchange will quote B shares in Hongkong dollars, less than three months after it switched from yuan to the US currency. Mr Zhang Yundong, director of the Shenzhen Securities and Exchanges Commission, said the authorities had decided to use the Hongkong currency for quoting and clearing B shares because the method was more ''convenient'' and ''feasible''. The stock exchange began quoting B shares in US dollars on March 22 to eliminate the foreign exchange risks of overseas investors after the yuan fell sharply. Previously, yuan and Hongkong dollars were used for quoting and clearing shares, respectively. Mr Zhang was speaking at a seminar in Hongkong on the future development of the Shenzhen stock market. The seminar was organised by the Standard Chartered Equitor Group. Mr Zhang was quoted by Equitor director Andrew Tong as saying that most B share investors were either from Hongkong or overseas who put their money through financial houses in Hongkong. For them, Hongkong dollars were readily available as the investment currency, he said. Mr Zhang said the Shenzhen authorities had not set a date for changing the currency. Mr Tong said quoting and clearing B shares in Hongkong dollars would help minimise transaction costs as settlement in US dollars would incur in and out remittances. Also, because the Hongkong dollar was pegged to the US currency, foreign exchange risks would be the same for both currencies, he added. Apart from bringing the system in line with the Shanghai stock exchange, which quotes and clear B shares in US dollars, Mr Tong saw no other reason for Shenzhen to adhere to the system. Meanwhile, in a move to boost liquidity on the B share market, Mr Zhang said the authorities were considering allowing cross-trading and trading of seats for foreign brokers. They were also considering allowing the re-trading of shares within one day after they had been traded, even before settlement. Mr Tong warned that the authorities must carefully consider the risks involved as it was still unclear whether it would be the broker or the clearing house that would have to bear the risk if there was a default. Mr Zhang said the pending flotations in Hongkong of nine state-owned enterprises had pulled away a great deal of investor interest, bringing the doldrums to the B share markets. But he believed B shares would be able to provide more attractive returns.