FINANCE

Hong Kong Watchdog Targets Mid-2027 for Direct Yuan Equity Trading

Published: Sep. 24, 2026 12:33 a.m. GMT+8

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Hong Kong Securities and Futures Commission Chairman Kelvin Wong, right, outlines the regulator’s strategic priorities at a media briefing on Sept. 23, alongside Chief Executive Julia Leung, left. Photo: Wang Xiaoqing/Caixin

Hong Kong plans to allow mainland investors to trade and settle eligible local shares directly in yuan through the Southbound Stock Connect by July 1, 2027, the Securities and Futures Commission (SFC) announced Wednesday.

The milestone is central to a newly unveiled regulatory roadmap aligned with Hong Kong’s first five-year development plan and Chief Executive John Lee’s latest policy address. The initiative seeks to dismantle currency-conversion barriers for onshore investors, channeling mainland capital directly into Hong Kong equities while solidifying the city’s role as the preeminent offshore yuan center.

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Explore the story in 30 seconds

SFC plans to enable mainland investors to trade Hong Kong shares in yuan via Southbound Stock Connect by July 1, 2027.
Chinese government bonds become margin collateral from November; REITs join Stock Connect in H1 2027.
HKMA’s CMU OmniClear is developing a digital asset platform for CBDC settlement by year-end.

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Who’s Who

Hong Kong Exchanges and Clearing Limited: Hong Kong Exchanges and Clearing Limited (HKEX) introduced a dual-counter model in June 2023, enabling 24 blue chips to trade in both HKD and yuan. Its OTC clearing arm began accepting onshore sovereign and policy bank bonds via Bond Connect in early 2025, now representing 19% of total margin collateral.

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What Happened When

June 2023：: HKEX introduced a dual-counter model allowing 24 blue chips to trade in both HKD and yuan.

Early 2025：: HKEX's OTC clearing arm began accepting onshore sovereign and policy bank bonds via Bond Connect.

Early 2027：: The SFC plans to launch a market consultation on streamlining prospectus disclosures.

First half of 2027：: REITs are slated to join Stock Connect.

By mid-2027：: Regulators and HKEX aim to finalize proposals on the GEM board listing framework review.

Before July 1, 2027：: Hong Kong plans to allow mainland investors to trade and settle eligible local shares directly in yuan through the Southbound Stock Connect.