Hong Kong Exchanges and Clearing Limited (HKEX) has confirmed plans to launch a new Hong Kong Dollar (HKD)-Renminbi (RMB) Dual Counter Model and Dual Counter Market Making Programme across its securities market on 19 June 2023, subject to market readiness. The new model and programme are designed to 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.”
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”, said HKEX.
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.
©Markets Media Europe 2023
