Tencent, HKEX, New World, Ping An among first firms to explore Hong Kong issue of yuan shares under new scheme

HKEX, AIA, Bank of China (Hong Kong), NetEase and Meituan also among 14 companies that expressed interest in issuing yuan-denominated shares

The companies said the plan presented to lawmakers on Monday will offer convenience for mainland investors and expedite yuan internationalisation

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A new government plan to allow trading in yuan-denominated stocks will offer convenience for mainland investors and expedite RMB internationalisation, according to two Hong Kong-listed companies. Photo: EPA-EFE

Published: 2:21pm, 3 Oct 2022Updated: 5:41pm, 3 Oct 2022

Tencent, New World Development (NWD) and Ping An Insurance are among 14 Hong Kong-listed companies that on Monday declared they will explore issuing yuan-denominated shares in a show of support for a government plan to allow trading in such shares via the Stock Connect scheme starting in the first half of next year.

Other big players announcing similar plans includes bourse operator Hong Kong Exchanges and Clearing (HKEX), the city’s largest insurer AIA and Bank of China (Hong Kong), which is one of the city’s note-issuing banks.

The list also includes e-commerce giant JD.com, Chinese computer maker Lenovo, oil company CNOOC, Hong Kong developer Sun Hung Kai Properties and China Resources Beer, mobile-phone maker Xiaomi, video-game giant NetEase, and food delivery firm Meituan, according to separate statements issued by the companies. In addition, Alibaba, which owns the South China Morning Post, said it supports the arrangement.

The announcements came hours after the government made a presentation to Hong Kong’s Legislative Council on Monday proposing a law change, to be made by the end of this year, that would waive stamp duty for brokers who act as market makers to provide liquidity for trading of yuan-denominated shares.

Pedestrians walk past Exchange Square, the building housing the Hong Kong stock exchange on October 4, 2021. The exchange has offered yuan-denominated trading since 2010, but has seen few takers. Photo: EPA-EFE

“We are deeply encouraged by the positive responses from listed issuers,” Christopher Hui Ching-yu, secretary for financial services and the treasury, said in a statement on Monday afternoon. “We will continue to assist the issuers in setting up yuan trading counters, and actively take forward the implementation work with relevant mainland institutions.”

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