Key facts
- Hong Kong plans to allow direct yuan trading and settlement of eligible local shares through the Southbound Stock Connect by July 1, 2027.
- The initiative aims to remove currency conversion barriers for mainland investors.
- The plan is part of Hong Kong's first five-year development plan and Chief Executive John Lee's policy address.
Hong Kong is targeting mid-2027 to allow mainland investors to trade and settle eligible local shares directly in yuan through the Southbound Stock Connect. The Securities and Futures Commission (SFC) announced the plan, which is a key component of a new regulatory roadmap aligned with Hong Kong's first five-year development plan and Chief Executive John Lee's latest policy address. The initiative is designed to eliminate currency conversion barriers for onshore investors, thereby channeling more mainland capital into Hong Kong equities and reinforcing the city's status as the primary offshore yuan center.