Hong Kong exchange to introduce new dual counter model in 2023 first half

THE Hong Kong Stock Exchange (HKEX) said on Tuesday (Dec 13) it would introduce a new dual counter trading model from the first half of 2023 where investors will be able to interchange securities listed in both Hong Kong dollar and renminbi (RMB) counters.

The exchange will also establish a program in its securities market to support the liquidity of renminbi counters and reduce price discrepancies between the two counters, it said.

The measures are the latest in a series of undertakings to aid a growing number of US-listed Chinese firms conducting secondary or primary listings in Hong Kong to mitigate the impact of possible delistings in the United States.

In October, the Hong Kong government said it plans to waive stamp duty on specified stock transactions conducted by market makers for dual-counter trading.

“These and other initiatives will help further facilitate and attract dual counter listings,” said Wilfred Yiu, chief operating officer of Hong Kong Exchanges and Clearing.

The bourse added that the measures will help support mainland investors to trade RMB-denominated securities through the southbound Stock Connect investment channel that connects the Hong Kong, Shanghai, and Shenzhen stock exchanges.

“HKEX is committed to supporting the internationalisation of RMB and further elevating Hong Kong’s role as the world’s premier offshore RMB hub,” Yiu said.

China has encouraged using the yuan as a trade settlement currency and promoting yuan-denominated cross-border investments, while leveraging Hong Kong as a major hub for its global offshore yuan business. REUTERS