HKEX TO INTRODUCE HKD-RMB DUAL COUNTER MODEL AND DUAL COUNTER MARKET MAKING PROGRAMME IN HONG KONG SECURITIES MARKET
Hong Kong Exchanges and Clearing Limited (HKEX) is today (Tuesday) pleased to announce the introduction of a new Hong Kong Dollar (HKD)-Renminbi (RMB) Dual Counter Model (Model) and an inaugural Dual Counter Market Making Programme in its securities market, further supporting the listing, trading and settlement of RMB counters in Hong Kong. HKEX expects to commence onboarding for these initiatives in the first half of 2023, subject to regulatory approval and market readiness.
Under the proposed Model, investors will be able to interchange securities listed in both HKD and RMB counters, following enhancements to be made to existing trading and settlement arrangements. To support the liquidity of RMB counters and minimise price discrepancies between the two counters, HKEX will introduce a new Dual Counter Market Making Programme. Dual Counter Market Makers engaged to conduct market making and liquidity providing activities may be qualified for stamp duty exemption for their eligible transactions, subject to the relevant legislative amendments being passed by Hong Kong’s Legislative Council. These measures will pave the way to support the initiative of allowing Mainland investors to trade RMB-denominated securities through southbound Stock Connect currently being explored with the Mainland authorities.
HKEX Chief Operating Officer and Co-Head of Markets Wilfred Yiu said: “The introduction of the HKD-RMB Dual Counter Model and the Dual Counter Market Making Programme is an exciting new development in our market. These and other initiatives will help further facilitate and attract dual counter listings and help develop even greater synergies with our current China-related products. HKEX is committed to supporting the internationalisation of RMB and further elevating Hong Kong’s role as the world’s premier offshore RMB hub.”
Other existing listing, trading, clearing and settlement arrangements will generally apply to RMB counters in the Model. HKEX will announce the commencement date of the Model and publish the list of dual counter securities for the market making programme in due course.
Further information about the Model and other operational details are available on the HKEX website and in a circular published today.
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