Hong Kong to introduce yuan share trading on June 19, ‘cementing its role as the world’s leading offshore yuan hub’, HKEX’s Aguzin says
- Companies such as Alibaba that represent almost 40 per cent of Hong Kong’s market turnover have applied for yuan share counters
- Countries using the yuan for trade settlements will also be interested in trading yuan shares in Hong Kong, lawmaker for the financial services sector Robert Lee says
Hong Kong will introduce yuan share trading from June 19 in a breakthrough that brokers expect will boost the city’s status as an offshore centre for the Chinese currency.
“The new dual-counter model is another key milestone in the development of Hong Kong’s capital markets,” Nicolas Aguzin, HKEX’s CEO, said as he announced the kick-off date for the much-anticipated scheme. “It will give issuers and investors more choice, it will enrich Hong Kong’s yuan products ecosystem, cementing its role as the world’s leading offshore yuan hub, and it will support the ongoing internationalisation of the yuan.”
Under the model, investors will be able to interchange securities listed in both Hong Kong dollars or the yuan. Securities traded through the counters will be of the same class and the holdings of the securities will be transferable without a change in beneficial ownership, HKEX said.
“We look forward to working with everyone to continue building a truly rich, liquid and vibrant marketplace of the future,” Aguzin said.