Hong Kong plans to set up a yuan stock trading counter in the second half of next year, as an effort to offer easier access and reduce currency risks for mainland investors, a local official said on Monday.

To propel offshore yuan business development and enhance the connection between Hong Kong and the mainland, the Hong Kong Special Administrative Region (HKSAR) will work to include eligible overseas companies, which are primarily listed in the city, into the Stock Connect scheme, and establish yuan-denominated stock trading counter in Hong Kong, Hui Ching-yu, secretary for Financial Services and the Treasury of the HKSAR government, said at the monthly Legislative Council financial affairs panel meeting on Monday, Securities Daily reported.

The HKEX intends to launch a new market-maker mechanism and waive stamp duty to encourage brokers for trading yuan-denominated shares, the report said.

The Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect established a two-way trading link between the Shanghai Stock Exchange, Shenzhen Stock Exchange, and HKEX.

The southbound legs of the stock link mechanism allow capital to flow from A-share markets to global markets.