Hong Kong’s troubled stocks await a boost from trade in yuan

Hong Kong is betting that a new program allows investors to trade stocks in the yuan along with its local currency, helping to revive the ailing stock market and increase the volume of trading hovering at a 4-year low.

The exchange launched a so-called double meter model on Monday to give customers the option to buy and sell some of the largest shares listed in the financial position using the yuan, including Tencent Holdings, Alibaba Group Holding and China Mobile. There are 24 companies on the list with a combined market value of $1.9 trillion, or more than one third of the city’s total value.

Capital flows may also provide an incentive for Hong Kong’s shares, helping to extend its uptrend this month with hopes for new stimulus measures.

If the double meter succeeds, it will unleash a new wave of cash from the mainland to buy Hong Kong shares. Local investors enjoy an increasing presence in the city’s stock market, where their turnover on trading links represents more than 26% of Hong Kong’s daily total.