HKMA pushing for removal of yuan conversion cap

Due to expected strong yuan demand.

The Hong Kong Monetary Authority is lobbying Beijing to lift the cap on the amount of yuan that Hong Kong residents can convert.

According to a research note from Barclays, this is in line with the anticipated strong demand for yuan when the Shanghai Hong Kong Stock Connect gets going next month.

The Chief Executive of HKMA said “[The People’s Bank of China] indicated that there are no major problems in removing the daily exchange limit of 20,000 yuan for Hong Kong residents per person per day."

The official continued: "We will endeavour to finalise this arrangement before the launch of the Shanghai-Hong Kong Stock Connect [plan].”