Money
HK to boost RMB-denominated shares trading
Updated: 2011-05-12 13:28
(Xinhua)
HONG KONG -- Hong Kong Exchanges and Clearing (HKEx), the local bourse operator, said on Wednesday that it plans to introduce a special facility in the second half of this year to encourage trading in renminbi-denominated shares in the secondary market.
The renminbi equity Trading Support Facility (TSF) will source renminbi from one or more banks in Hong Kong by way of foreign exchange spot transactions and provide the renminbi through its participating brokers who wish to buy renminbi-denominated shares in the market, said Charles Li, chief executive of HKEx, in a statement released in the day.
Trading in renminbi-denominated shares is regarded important to the further development of the offshore renminbi market in Hong Kong. To date, there are three renminbi-denominated debt equities listed and available for trading on the exchange.
The listing of Hui Xian on April 29, a real estate investment trust owned by local billionaire Li Ka-shing, was seen as an important milestone as the first IPO and listing of renminbi-denominated REIT.
"HKEx will continue to work closely with issuers, brokers and regulators on the introduction of other renminbi-denominated products," Li said.
On Wednesday, HKEx also reported a net profit of HK$1.24 billion ($159.6 million) of net profit in the first quarter this year, up 10 percent from a year ago. ($1 is equivalent to HK$7.77)
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