China's currency regulator said it will let individuals buy Hong Kong stocks for the first time, helping send the city's benchmark Hang Seng Index to its biggest gain in almost nine years.
Chinese citizens with a Bank of China Ltd. account in the northern city of Tianjin will be allowed to invest foreign currencies under a pilot program, the State Administration of Foreign Exchange said Monday. The regulator didn't specify an investment maximum or say when the trial will start.
Hong Kong stocks extended a rally after the announcement on speculation more of China's 17 trillion yuan ($2.2 trillion) in household savings will enter the market. China is letting more capital flow offshore to curb growth in its record $1.33 trillion foreign-exchange reserves, which have flooded the economy with cash and put pressure on the yuan to appreciate.