HKMA sells HK$6.2 bln to keep HK dlr in trading band

HONG KONG Nov 12 (Reuters) - Hong Kong's central bank, the Hong Kong Monetary Authority, on Thursday afternoon injected HK$6.2 billion (US$800 million) into the money market to stem an appreciating Hong Kong dollar HKD= and keep it within its fixed trading band.

The Hong Kong dollar hit the top of its trading band at 7.7500 on Thursday as funds continued to flow into the territory for big upcoming IPOs and after China on Wednesday signalled it was ready to resume appreciation of its yuan CNY=CFXS currency, dealers said.

According to data on Reuters page HKMAOOC, the latest intervention will lift the aggregate balance -- the sum of balances on clearing accounts maintained by banks with the HKMA -- to HK$286.225 billion by Nov. 16.

The Hong Kong dollar is pegged at 7.80 to the U.S. dollar but can trade between 7.75 and 7.85 to the U.S. dollar. Under the linked exchange rate mechanism, the HKMA is obliged to intervene in the market to keep the trading band intact if the currency hits 7.75 or 7.85.

By 0906 GMT, it was quoted at 7.7500/01. (Reporting by Christina Lo, writing by Susan Fenton; Editing by Chris Lewis)