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ARTICLE · 13 MAY 2011

The New RMB Equity Trading Support Facility

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Hong Kong Exchanges and Clearing Limited (HKEx) intends to launch the new RMB Equity Trading Support Facility (TSF) as early as in the second half of 2011.

Hong KongFinance and Banking

Originally published 12 May 2011

Keywords: RMB Equity Trading Support Facility, TSF, RMB-denominated shares

Quick Read

Hong Kong Exchanges and Clearing Limited (HKEx) intends to launch the new RMB Equity Trading Support Facility (TSF) as early as in the second half of 2011. Broadly speaking, TSF allows investors to exchange Hong Kong dollars (HKD) for Renminbi (RMB) in order to purchase RMB-denominated shares in the secondary market. Upon the selling of the RMB-denominated shares, investors can get their money back in HKD. The major purpose of launching the TSF is to ensure sufficient and reliable RMB liquidity in Hong Kong so as to facilitate the growth of the RMB-denominated share market which is important for the further development of the offshore RMB market in Hong Kong.

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