In October, the authorities in Shenzhen, Guangdong province, completed the issuance of 5 billion yuan in offshore multi-tranche renminbi-denominated bonds listed on the Hong Kong Stock Exchange. It was the first time a mainland municipal government bond had been issued outside the mainland.

Yue said: "We are also looking to further widen use of the renminbi in capital market transactions, such as promoting RMB stocks. We are looking at this issue with other regulators. Promoting use of the currency in this field would help drive underlying renminbi-denominated foreign exchange, derivatives or financing activities, and enrich the renminbi product space in Hong Kong."

Yue feels that consideration now needs to be given to ways in which demand from issuers and investors can be driven. He said there is also a need to ensure price convergence and reduce the risk of market fragmentation if there are parallel counters in both the renminbi and the local currency for stocks listed in Hong Kong.

"A working group comprising the SFC, HKMA and HKEX has been formed to conduct a feasibility study and work with the mainland authorities on exploring the inclusion of renminbi counters in southbound trading under Stock Connect. We hope to come up with some practical suggestions in the near future," Yue said.