Hong Kong to set up yuan stock trading desk in Q2 2023 (responsible)

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The Exchange Square complex, home to the Hong Kong Stock Exchange, in Hong Kong, China on July 13, 2022. /CFP

The Exchange Square complex, home to the Hong Kong Stock Exchange, in Hong Kong, China on July 13, 2022. /CFP

Hong Kong plans to set up a yuan stock trading desk in the second half of next year, in a bid to provide easier access and reduce currency risks for mainland investors, it said. a local official on Monday.

To propel the commercial development of the offshore yuan and improve the connection between Hong Kong and the mainland, the Hong Kong Special Administrative Region (HKSAR) will endeavor to include eligible foreign companies, which are mainly listed in the city, in the Stock Connect program, and to establish yuan-denominated stock trading desk in Hong Kong, Hui Ching-yu, secretary for financial services and treasury of the Hong Kong SAR government, said at the monthly meeting on Monday. of the Legislative Council’s financial affairs committee, Securities Daily reported.

The HKEX intends to launch a new market maker mechanism and waive stamp duty to encourage brokers to trade yuan-denominated stocks, according to the report.

The Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect established a two-way trading link between the Shanghai Stock Exchange, the Shenzhen Stock Exchange and HKEX.

The southern legs of the equity linkage mechanism allow capital to flow from A-share markets to global markets.

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