Hong Kong lawmakers, brokers support bill paving the way for mainland Chinese investors to trade yuan-denominated stocks in city
- Financial Secretary Paul Chan disclosed the plan to introduce a ‘one stock, two currencies’ option in his blog last weekend
- The daily turnover on the southbound link of the Stock Connect averaged US$5.3 billion last year
Hong Kong lawmakers and stockbrokers are firmly behind a proposed government legislation that will allow the city to introduce yuan-denominated stock trading.
“By adding a yuan trading desk option for the Stock Connect, such arrangement has [the benefit] of killing two birds with one stone,” Chan said in his blog. “We have completed preparations for the potential technical challenges that could arise from [from this new arrangement].”
A bill will be submitted to the Legislative Council this year to allow Hong Kong stocks under the Stock Connect scheme to be quoted in both Hong Kong dollars and the yuan for mainland investors to trade, he said. A market maker system which will quote Hong Kong stocks in both currencies will also be established.
