China’s Li Announces Expanded Yuan Trading in Hong Kong

Posted August 17th, 2011 at 1:25 am (UTC-5)
Leave a comment

China Wednesday announced measures to make it easier for Hong Kong companies to invest in mainland securities, the latest step in a continuing drive to make the yuan an international currency.

Vice Premier Li Keqiang announced an initial quota of more than $3 billion for foreign investors based in Hong Kong seeking to purchase yuan-denominated securities. China has long been using Hong Kong as a test bed for a loosening of its strict currency controls.

Li, who is expected to become China's next premier, announced the measures in a policy address where he stressed the need for the mainland to continue its economic opening-up and modernization. He said Hong Kong has played an irreplaceable role in that process.

He said China will continue to support the development of yuan-based financial products in Hong Kong, a process that is giving an important boost to the territory's vital banking sector.

A day earlier, Li met with Hong Kong's chief executive Donald Tsang and 30 business and industrial leaders. He also visited an elderly day care center and some local residents in their homes to learn about their livelihood.