Hong Kong Exchange Launched RMB & HKD Dual-Currency Share Trading on 19th June 2023, 24 Hong Kong Listed Companies Accounting for 40% of Daily Trading Volume
21st June 2023 | Hong Kong
Hong Kong Exchange (HKEX) has launched the RMB & HKD dual-currency share trading on 19th June 2023 (Monday), with trading available in 24 Hong Kong listed companies accounting for 40% of daily trading volume with counters including Alibaba, Kuaishou Technology & Hong Kong Exchange (HKEX). The RMB & HKD dual-currency share trading will allow investors to trade in the shares in either currency, and transferable without a change in beneficial owner (same share class holding). 9 Exchange Participants have also joined the Dual Counter Market Making programme as market makers. HKEX: “Hong Kong Financial Secretary Paul Chan and HKEX Chairman Laura M Cha struck the gong to celebrate the launch of the Dual Counter Model at a market open ceremony today, attended by legislators, regulators, issuers and market participants at HKEX Connect Hall. Under the new Model, designated shares listed in both HKD and RMB counters can be traded and settled in RMB or HKD. Dual Counter Market Makers for eligible shares offer continuous buy and sell quotes for securities in the RMB counter, providing liquidity for HKD-RMB Dual Counter securities trading and minimising any possible price discrepancies between the two counters. The Model provides the groundwork to support the next phase of development to allow investors from Mainland China to trade Hong Kong-listed RMB securities through Southbound Stock Connect.” See below for announcement. CNY ~ Chinese Yuan, RMB
“ Hong Kong Exchange Launched RMB & HKD Dual-Currency Share Trading on 19th June 2023, 24 Hong Kong Listed Companies Accounting for 40% of Daily Trading Volume “
HKEX Chief Executive Officer Nicolas Aguzin: “The ongoing internationalisation of the RMB will be one of the defining characteristics of global markets in the next decade, and at HKEX we are delighted to today be taking another step forward in building a liquid and accessible RMB ecosystem. The launch of the Dual Counter initiative is the latest in our broad suite of RMB products, providing investors with more choice and companies with another channel to tap the Hong Kong offshore RMB pool. Today’s launch is the culmination of many months of hard work and we’d like to thank all our market participants, our regulators and those involved whose partnership and collaboration have helped to continue to reinforce Hong Kong’s role as the preeminent global offshore RMB hub.”
Hong Kong Exchange to Launch CNY & USD Dual-Currency Share Trading on 19th June 2023, More than 20 Hong Kong Listed Companies Have Applied Including Alibaba, Kuaishou Technology & Hong Kong Exchange
20th May 2023 – Hong Kong Exchange (HKEX) will be launching CNY and USD dual-currency share trading on 19th June 2023 (Monday), with more than 20 Hong Kong listed companies applying including Alibaba, Kuaishou Technology & Hong Kong Exchange (HKEX). The CNY and USD dual-currency share trading will allow investors to trade in the shares in either currency, and transferable without a change in beneficial owner (same share class holding). See below for announcement. CNY ~ Chinese Yuan, RMB
HKEX to Launch HKD-RMB Dual Counter Model on 19 June 2023
19th May 2023 – Hong Kong Exchanges and Clearing Limited (HKEX) is today (Friday) pleased to announce that it will launch the Hong Kong Dollar (HKD)-Renminbi (RMB) Dual Counter Model (Model) and the Dual Counter Market Making Programme in its securities market on 19 June 2023, subject to market readiness. This new model and programme will further support the trading and settlement of RMB-denominated securities in Hong Kong.
HKEX Chief Executive Officer, Nicolas Aguzin said: “The new Dual Counter Model is another key milestone in the development of Hong Kong’s capital markets. It will give issuers and investors more choice, it will enrich Hong Kong’s RMB products ecosystem, cementing its role as the world’s leading offshore RMB hub, and it will support the ongoing internationalisation of the RMB.”
“I would like to express our thanks to all those involved in supporting us on the design and rollout of this exciting initiative and we look forward to working with everyone to continue building a truly rich, liquid and vibrant marketplace of the future,” Mr Aguzin added.
HKEX has published relevant rule amendments for the introduction of the Model and the Dual Counter Market Making Programme. Interested Exchange Participants may now apply to become a Dual Counter Market Maker for eligible securities under the Model in accordance with the relevant rules.
The Dual Counter Market Makers will offer buy and sell quotes for the RMB-denominated securities trading, providing liquidity in the RMB counter and minimising price discrepancies between the HKD and RMB counters. The initial list of Dual Counter Securities and Dual Counter Market Makers will be announced in due course.
Under the Model, investors will be able to interchange securities listed in both HKD and RMB counters. Securities under the two counters are of the same class and holdings of securities in the two counters can be transferred without change of beneficial ownership.
As part of the preparation for the launch, HKEX has arranged a series of testing and practice sessions between May and June to support market participants on the trading and settlement of securities under the Model.
Further information about the launch of the Model, including related rules, FAQs and circulars can be found on the HKEX website.
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