HKEx is not ready for renminbi products

Author: | Published: 14 Feb 2011

The Hong Kong stock exchange (HKEx) is not ready to support the trading and clearing of products denominated in renminbi.Bankers’ counsel in the city say the exchange’s declarations that it has the systems in place to handle the growth of an offshore renminbi equity market are untrue.
Regulators still need to clarify a number of factors concerning product development, said the Asia IBD legal head of a local investment bank.
The HKEx also needs to encourage many more local brokerage houses to pay for new systems catering to retail investors RMB needs, he said. He believed that many were delaying investment in this regard until the market was...