Buzz is building that the mainland might relax RMB daily conversion limits on the eve of Hong Kong's 15th handover anniversary.
The rumored “gift” policy package from China may raise the RMB daily conversion limit fourfold to RMB 80 thousand, from the current RMB 20 thousand. Guangdong province might also be allowed to open RMB accounts in Hong Kong. Both of these will be a boon for Hong Kong's RMB business.
Here's more from BBVA:
As the 15th anniversary of Hong Kong’s handover to China draws near on July 1, people are speculating whether China’s leaders will offer a “gift package” during their forthcoming visit to Hong Kong for the celebration. As reported by an influential Chinese media outlet in Hong Kong, Chinese authorities might relax certain restrictions in order to enable further development of Hong Kong as the premier offshore RMB business center and international asset management center. In this respect, the RMB daily conversion limit might be raised to RMB 80 thousand, from the existing RMB 20 thousand limit.
There is also speculation that authorities may designate Guangdong Province as a pilot region where residents can open RMB accounts in Hong Kong (subject to certain limits). If implemented, these measures will not only spur growth in Hong Kong’s RMB business but would also be a step in furthering China’s capital account liberalization.
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