Hong Kong Stock Exchange To Adopt Dual Counter Trading Model

Investors can begin exchanging assets listed on both the Hong Kong dollar and renminbi counters on June 19, according to a statement from the Hong Kong Stock Exchange on Friday.

The exchange operator had announced plans late last year to change its current trading format to streamline the trading process for an increasing number of Chinese companies with US listings that conduct secondary or primary listings in Hong Kong.

On June 19, the exchange operator announced in a filing that the dual counter market making program in its securities market, which is expected to increase the liquidity of renminbi counters and reduce price differentials, will also come into effect.

Nicolas Aguzin, CEO of HKEX, highlighted the benefits of these most recent actions, saying, “It will give more choice to issuers and investors, it will enrich Hong Kong’s RMB product ecosystem…and it will support the continued internationalization of support RMB.”

The inaugural list of dual-counter securities and dual-counter market makers would be made public by HKEX in due course, it was stated.

Several major companies, including Tencent, AIA Group, and Ping An Insurance Group Co of China Ltd, have already submitted their bids for a dual-currency counter.

Separately, HKEX announced that a series of test sessions would be held between May and June to kick-start launch preparations and help market players trading under the model.