Hong Kong plans yuan repurchase facility

Move to help meet anticipated demand for Shanghai stocks after cross-border trading starts next month

The Hong Kong Monetary Authority is setting up a 10 billion yuan ($1.6 billion) repurchase facility to ensure an adequate supply of China's currency as the city's investors gain greater access to Shanghai's stock market.

HKMA will announce in coming weeks a list of banks that will act as primary liquidity providers for the yuan, Chief Executive Norman Chan said at a Treasury Markets Summit in Hong Kong. The Shanghai-Hong Kong Stock Connect program, which is scheduled to start in October, will allow a net 23.5 billion yuan of daily equity purchases between the two cities.