HKEx secondary market facility needs to withstand extreme offshore CNY liquidity crunch

The Hong Kong Exchange & Clearing (HKEx) says its renminbi trade support facility (TSF), slated for launch during the second half this year, will be stress-tested periodically to ensure the size of its renminbi/Hong Kong dollar conversion pool is big enough to allow undisrupted trading. The TSF is being set up to enable investors to buy renminbi-denominated stocks listed in Hong Kong in the secondary market with Hong Kong dollars.

Market participants have a diverse range of views regarding the a