This July 4, 2018 photo shows the bronze bull sculptures outside the Hong Kong stock exchange building in Central, Hong Kong. (CALVIN NG / CHINA DAILY))
Hong Kong's Secretary for Financial Services and the Treasury Christopher Hui Ching-yu expressed gratitude for various listed issuers’ support in setting up a renminbi stock trading counter on Monday.
The special administrative region is preparing to set up an RMB securities trading counter under the southbound trading of Stock Connect in the first half of 2023, drawing much support from Hong Kong-listed companies.
READ MORE: HKMA studies feasibility of using yuan to trade HK shares
Hong Kong Exchanges and Clearing, the bourse’s operator, said it welcomes the HKSAR government’s proposal, adding that it would propel offshore RMB business development in Hong Kong and increase the international appeal of the city.
Listed companies’ participation is a vote of confidence to the development of RMB securities in Hong Kong, said Hui
Various listed companies including Tencent, Meituan, Bank of China, Ping An Insurance, and New World Development joined in the chorus of those supporting the government’s initiative, saying they will explore the feasibility of setting up an RMB-denominated stock trading counter in Hong Kong.
Hui said he is “sincerely grateful for the enthusiastic responses from LegCo members and listed issuers”, adding that the issuance and trading of RMB stocks will promote the internationalization of the yuan and consolidate Hong Kong’s role as an offshore RMB business hub.
“Listed issuers who indicated their support today include Hang Seng Index constituent stocks with promising turnover,” said Hui.
“Their participation is a vote of confidence to the development of RMB securities in Hong Kong, which will be conducive to our promotion work to other issuers, enabling Hong Kong to gradually enhance its dual-currency stock market to be denominated and traded in both Hong Kong dollars and RMB.”
ALSO READ: HK to build up offshore renminbi assets market
To promote the liquidity of yuan-denominated stocks and price efficiency, and facilitate trading by investors, the SAR government will also submit a bill to lawmakers within this year to exempt the stamp duty on stock transfers for specified transactions conducted by market makers for dual-counter stocks.
Contact the writer at email@example.com