Authorities mull settling Southbound Stock Connect transactions in RMBFinance | 17 Oct 2021 12:49 pm
Southbound Stock Connect transactions may be settled in renminbi in the future, according to Secretary for Financial Services and the Treasury Christopher Hui Ching-yu.
Such arrangement would help reduce transaction costs and lower uncertainties for investors, he said in a radio program on Sunday.
Under the current mechanism of Stock Connect, mainland investors buy Hong Kong stocks slapped with prices in HK dollars. They have to wait until the market closes before they know how much they have to pay in yuan. It creates uncertainties due to fluctuation currency exchange rates.
If the transactions are settled in yuan, investors will not have to worry about changing exchange rates.
Hui also said he is not worried about the costs in developing the Northern Metropolis envisioned in the Policy Address.
There is no cost estimate for the plan yet. But collaboration between the government and the private sector is possible, as in the development of Sha Tin new town in the past, he said.
Taxpayers will not have to pay the entire bill, he reassured.