Nearly 20 blue chip firms have so far submitted applications to use the yuan trading counter which is expected to be launched by the end of June, according to Hong Kong Exchanges and Clearing (0388). However, southbound trading will still need to be conducted through the existing process of exchanging RMB to HKD. He said the counter will be a "game changer" for southbound trading. Currently, investors trading Hong Kong stocks via the Stock Connect exchange yuan for the local currency, with the exchange rate not confirmed until the following day. Aguzin noted that once the yuan counter for southbound transactions is introduced, it is expected that "vast majority" of transactions will be denominated in yuan.

Source: The Standard May 03, 2023 07:11 UTC