HK scraps yuan conversion cap ahead of Shanghai link

Singapore

IN preparation for a potential spike in demand for yuan, Hong Kong has decided to lift a daily cap on the amount of Chinese yuan residents can convert from next Monday - which is also when the city's new stock trading link with Shanghai will start.

Analysts - to whom this move was no surprise in light of the Shanghai-Hong Kong Stock Connect scheme - said this latest regulatory change will also be positive for the broader growth of the offshore renminbi market and development of renminbi investment products.