HKEX Launches HKD-RMB Dual Counter Model and Dual Counter Market Making Programme

In view of the launch of the Hong Kong Dollar (HKD)-Renminbi (RMB) Dual Counter Trading Model on June 19, 2023, the Hong Kong Exchanges and Clearing Limited (HKEX) has published a press statement in which Nicolas Aguzin, the CEO of HKEX, expressed his satisfaction with the launch, emphasizing the importance of the internationalization of the RMB in global markets. He stated that the Dual Counter initiative is part of HKEX’s broader suite of RMB products, which aim to provide investors with more choices and companies with another channel to access the Hong Kong offshore RMB pool.
At the launch of the Dual Counter Trading Model, a total of 24 Hong Kong-listed companies, which represent 40% of the average daily turnover of the cash equities market, began trading as Dual Counter securities. These companies now offer both HKD and RMB counters to investors. Additionally, nine Exchange participants have joined the Dual Counter Market Making program as market makers.
To conclude, the press release notes that the Dual Counter Model lays the groundwork for future development, „allowing investors from Mainland China to trade Hong Kong-listed RMB securities through Southbound Stock Connect“. This expansion aims to further enhance the accessibility and reach of the RMB market.
—
Concurrently, the government has published the remarks of Financial Secretary Paul Chan at the launch ceremony in which he emphasized the strategic importance of RMB and RMB-denominated securities and Hong Kong’s commitment to play a pivotal role in the expansion of cross-boundary RMB flow and in the offering of more investment products to support this objective.