Frequently Asked Questions 
15/09/2010 
 
Part 1 : General
1.1 Is HKEx planning to launch any renminbi (RMB) denominated products?
 

With an established multi-currency market infrastructure, HKEx is ready to support the listing, trading and clearing of RMB denominated products in Hong Kong.  Our trading and clearing systems are multi-currency systems which are capable of supporting the processing of RMB transactions.

With the new clearing agreement on 19 July 2010 (i.e. the supplementary memorandum of cooperation on the expansion of the RMB trade settlement scheme), it is expected that the RMB circulation in Hong Kong will further increase, promoting the development of RMB products.

As always, we will actively explore with market participants the viability of any possible products.  Meanwhile, we also note that listing of RMB denominated products would be driven by liquidity and subject to demands of issuers and the market.
 

1.2 Is the market ready to trade RMB denominated products at HKEx?
    

The HKEx infrastructure is ready to support the trading and clearing of RMB denominated products. 

With the new clearing agreement on 19 July 2010, brokers are now able to open RMB bank account which enables fund transfer between brokers and their clients as well as clearing houses.  We understand brokers will also need to examine their internal operations, trading systems and other in-house systems to ensure they can support multi-currency transactions.

We have been working with market participants to facilitate their preparation and we encourage market participants to make necessary preparation early to enable themselves to participate in the RMB business.
 

1.3

Despite that the pool of RMB funds in Hong Kong has been growing, is the limited liquidity sufficient to sustain a secondary market for RMB denominated equities and derivatives in Hong Kong?   
 

We believe RMB products are very important to our future but there is still a long way to go. 

The clearing agreement of 19 July 2010 has enabled RMB to circulate outside the Mainland which is imperative to Hong Kong's development into an offshore RMB centre.  On 17 August, the People's Bank of China said it would allow Hong Kong banks and certain eligible institutions to make use of their RMB holdings to diversify into the Mainland interbank bond market.  Cross-border RMB programmes along this line will enlarge the offshore RMB investment channels for investors outside the Mainland and encourage them to hold and use RMB.  Once the Mainland approves the managed two-way capital flow (products serving this purpose could include the so called ''mini-QFII'' and debt instruments), we believe offshore RMB activity will be stimulated and the RMB pool in Hong Kong will be further expanded.  This will provide the foundation for RMB denominated product issuance in Hong Kong though listing and trading of these products will be subject to demands of issuers and investors.
 

1.4 Who can open a RMB bank account in Hong Kong?
 

Hong Kong residents and corporations are allowed to open RMB bank accounts in Hong Kong.  However, individual investors should note the daily RMB exchange limit of RMB20,000 and remittance limit of RMB80,000 to Guangdong provinces still apply.  Please refer to the terms and conditions of opening RMB bank accounts with the relevant banks for more details.