Brokerages Reminded to Open RMB Accounts Before 7 March Deadline
The Securities and Futures Commission (SFC) reminds and urges all brokerages and other Participants of the Central Clearing and Settlement System (CCASS) wanting to carry out listed Renminbi (RMB) securities business to set up a RMB designated bank account as soon as possible (Note 1).
The deadline for submitting the application documents to the Hong Kong Securities Clearing Company Limited (HKSCC) for setting up such accounts is 7 March.
As of today, about 60% of brokerages and other CCASS Participants have opened RMB bank accounts or submitted application documents.
A series of RMB Readiness Tests for brokerages and other CCASS Participants who have such accounts will be conducted on 17, 19 and 20 March to ensure all their relevant systems and procedures are ready for dealing in RMB securities to be listed on the Stock Exchange of Hong Kong (SEHK) or clearing transactions in such securities.
In a circular issued today, the SFC reminds the industry that brokerages and other CCASS Participants who fail to submit the application documents for setting up RMB designated accounts to HKSCC by 7 March may risk not being able to participate in the Readiness Tests, and consequently may risk not being accepted by IPO sponsors to take part in RMB-denominated IPOs when they are launched in Hong Kong.