People's Republic of China Announced Measures for Honk Kong Companies

China on 17 August 2011 announced measures to make it easier for Hong Kong companies to invest in mainland securities, the latest step in a continuing drive to make the yuan an international currency. Vice Premier Li Keqiang announced an initial quota of more than three billion dollars for foreign investors based in Hong Kong seeking to purchase yuan-denominated securities. China has long been using Hong Kong as a test bed for a loosening of its strict currency controls.

Hong Kong is one of two special administrative regions (SARs) of the People's Republic of China (PRC), the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour. With a land mass of 1,104 km2 (426 sq mi) and a population of seven million people, Hong Kong is one of the most densely populated areas in the world. Hong Kong's population is 95 percent ethnic Chinese and 5 percent from other groups. Hong Kong's Han Chinese majority originate mainly from the cities of Guangzhou and Taishan in the neighbouring Guangdong province.