Hong Kong is preparing for the launch of yuan-denominated IPOs this year in attempts to boost its role as an offshore yuan settlement center, reports the China Daily.
The move would make the Hong Kong market more diversified and help to maintain its competitiveness in the IPO market.
The newspaper says Li Ka-shing, Hong Kong's richest man, may issue the first yuan-denominated IPO this year in the city with the sale of more than 10 billion yuan ($1.5 billion) of shares in a real estate investment trust.
But yuan-denominated stocks could face huge constraints because of a lack of adequate yuan liquidity in the market, says Chan Ka-keung, Secretary for Financial Services and the Treasury Bureau of Hong Kong Chan. To address this, local authorities are seeking to widen the liquidity pool with mainland banks to facilitate yuan-denominated trading.
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