The Hong Kong Monetary Authority (HKMA) has decided to scrap a RMB20,000 ($3,270) daily conversion cap from 17 November 2014, the same day when a trading program between the Hong Kong and Shanghai stock exchanges kicks off.
The end of the restriction puts locals on a par with non-residents, who have been able to buy unlimited amounts of China’s currency in the offshore market since August 2012.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
HKMA’s chief Norman Chan told reporters that the new arrangement would make it more convenient for locals to buy shares listed in Shanghai and other financial products denominated in yuan.
"This will faciliate the launch of RMB investment products by financial institutions in Hong Kong and raise the position of Hong Kong as an offshore RMB business centre to new height," he added.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
