Updated at 3.21pm: Chief Executive Donald Tsang Yam-kuen on Wednesday announced an extension to the individual visit scheme for mainlanders coming to Hong Kong as well as a relaxation of yuan exchange limits.
Mr Tsang was speaking at the Legislative Council, where he delivered his first policy address since he took office in June.
The central government had, in principle, approved an extension to the scope of yuan business in Hong Kong, he said.
?This includes raising the exchange limit between RMB and Hong Kong dollar per person per transaction; lifting the credit limit of RMB cards issued by banks in Hong Kong,? explained Mr Tsang.
The proposals included measures to relax the yuan remittance limit imposed on Hong Kong residents; extend yuan settlement to designated merchants in more sectors; and allowing designated Hong Kong merchants to open yuan cash deposit accounts and exchange the yuan deposits one-way into Hong Kong dollars.
?The central authorities will soon finalise the arrangements and make an official announcement,? he said.