HKEx to Extend Coverage of its RMB Equity Trading Support Facility
Hong Kong Exchanges and Clearing Limited (HKEx) announced today (Monday) that it will extend the coverage of its Renminbi (RMB) Equity Trading Support Facility (TSF) beyond RMB-traded shares to equity-related Exchange Traded Funds (ETFs) and Real Estate Investment Trusts (REITs) traded in RMB with effect from Monday, 6 August 2012.
The TSF was designed to serve as a back-up facility to enable investors to buy RMB-traded shares in the secondary market with Hong Kong dollars if they did not have sufficient RMB or had difficulty obtaining RMB.
The ChinaAMC CSI 300 Index ETF (stock code: 83188) and Hui Xian REIT (stock code: 87001) will be the first securities covered by the TSF.
"We are pleased to broaden the coverage of the TSF to facilitate the long-term growth and stability of RMB-traded securities listed on the Stock Exchange and thereby enhance the development of the offshore RMB market in Hong Kong," said Derrick Fung, HKEx’s Head of Clearing.
TSF foreign exchange rates and fund balances are available on the front page of the HKEx website for reference. Investors are advised to read the TSF Leaflet and consult their brokers before seeking to use the TSF. Information on the TSF can also be found in the TSF section of the HKEx website along with a list of TSF Participants.