Hong Kong set to take steps to boost offshore yuan market

HONG KONG: Hong Kong's government is set to announce measures to boost liquidity in the offshore yuan market, two sources with direct knowledge of the situation told Reuters on Thursday.

The measures will include increasing the daily yuan conversion quota for Hong Kong residents from 20,000 yuan ($3,100) and raising their daily transfer quota to mainland Chinese banks from the current level of 80,000 yuan, the sources said.

After peaking at 627 billion yuan in November, yuan deposits in Hong Kong banks have declined for five consecutive months and currently stand at around 552 billion yuan.

The Hong Kong Monetary Authority is due to hold a media briefing at 0830 GMT. It was not immediately known if the measures would be announced then.