- HKD-RMB Dual Counter Model to be launched in Hong Kong securities market on 19 June 2023, subject to market readiness
- HKEX now accepting applications for Dual Counter Market Makers
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.
Hong Kong Exchanges and Clearing Limited (HKEX) is a publicly-traded company (HKEX Stock Code:388) and one of the world’s leading global exchange groups, offering a range of equity, derivative, commodity, fixed income and other financial markets, products and services, including the London Metal Exchange.
As a superconnector and gateway between East and West, HKEX facilitates the two-way flow of capital, ideas and dialogue between China and the rest of world, through its pioneering Connect schemes, increasingly diversified product ecosystem and its deep, liquid and international markets.
HKEX is a purpose-led organisation which, across its business and through the work of HKEX Foundation, seeks to connect, promote and progress its markets and the communities it supports for the prosperity of all.