HKEx to launch renminbi secondary market facility to support IPOs
The exchange says the new offshore renminbi secondary market liquidity pool will not introduce additional counterparty or forex risk, thanks to a back-to-back arrangement with interested partner banks and brokers
The Hong Kong Exchange & Clearing (HKEx) is to launch a trade support facility (TSF) in the second half of this year that will enable investors to buy renminbi-denominated stocks, even if they are short of the Chinese currency. The move is designed to provide secondary market liquidity for the future listing of stocks in the Chinese currency amid a growing yet limited pool of offshore renminbi deposits in Hong Kong.
The exchange has held discussions with banks, custodians and brokers to build
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