Published at 02:14 (GMT) 1 August

Hong Kong Flows: USD/HKD: three banks to provide yuan services for non-residents today (IAQC5001)

USD/HKD eased to 7.7540-ish levels in early Asia after coming within striking distance of 7.7550 overnight. China's PMI-mfg for Jul came in slightly softer at 50.1vs prev. at 50.2. The reading was below expectations (mkt: 50.5) and market disappointment may provide support for USD/HKD. Intra-day trade however should be consolidative within 7.7530-7.7560 ahead of FOMC decision. Back home, non-HK residents will be able to open CNY accounts with authorized financial institutions. SCMP reported that HSBC, Hang Seng Bank and Bank of China (HK) will offer CNY accounts, CNY exchange and credit card services for non-residents form today. CNY trade settlements rose to a record high in June and the latest policy relaxation would likely boost deposit and transaction volume for the yuan business in Hong Kong. Separately, visitor arrivals to Hong Kong rose to 15.5%y/y in June from 12.7% previously. A pick up in tourists may signal stronger retail sales number for the month. Please search key words: HKD+RETAIL+PREVIEW for our views. FL