A woman walks past Exchange Square which houses the Hong Kong Stock Exchange in Hong Kong on April 27, 2022. (PHOTO / AFP)
Hong Kong Exchanges and Clearing Limited announced on Friday that it will launch the Hong Kong Dollar-Renminbi Dual Counter Model and the Dual Counter Market Making Program in its securities market on June 19, which will be conducive to promoting the trading and clearing of RMB-denominated securities in Hong Kong.
The initial list of Dual Counter Securities and Dual Counter Market Makers will be declared at a later stage, according to a HKEX statement.
The Dual Counter Market Makers will offer buy and sell quotes for RMB-denominated securities trading, providing liquidity to the RMB counter and narrowing the price differential between the dual counters
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The Dual Counter Market Makers will offer buy and sell quotes for RMB-denominated securities trading, providing liquidity to the RMB counter and narrowing the price differential between the dual counters.
In addition to rule amendments published by HKEX for introduction of the model, a series of testing and practice sessions will be conducted in May and June to familiarize market participants with the trading and clearing of securities under the new model.
This model will enable investors to interchange securities listed in both HKD and RMB counters. Securities in the two counters can be transferred without change of beneficial ownership.
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“Marking a new milestone in the development of Hong Kong’s capital markets, the model will provide issuers and investors with more trading options, consolidate Hong Kong’s position as the world’s leading offshore RMB hub, and further fuel the ongoing process of RMB internationalization,” said Nicolas Aguzin, HKEX chief executive officer.