HKD-RMB dual counter scheme up and running
The bourse operator in the city allowed investors to trade both in Hong Kong dollar or the yuan from Monday under the newly launched dual counter scheme. Under the scheme, investors can trade Hong Kong-listed stocks of 24 companies using offshore yuan, while nine market makers, or brokers, provide services for the scheme. On the first day of the scheme, the 24 stocks had a total transaction value of some 163 million renminbi, which is significantly smaller than the Hong Kong dollar counter with a turnover of HK$29 billion. Among the renminbi counters, China Mobile and Tencent had the highest transaction values with 55.2 million and 36.6 million yuan respectively, while the lowest transaction value was from Chang'an Automobile at 16,700 yuan. "Today's launch provides investors with even more choices in renminbi assets. It also gives issuers another channel to tap into the fast-growing offshore renminbi pool in Hong Kong," Nicolas Aguzin, chief executive officer of HKEx, said at the launch ceremony on Monday morning. Aguzin said the 24 companies that add their renminbi counter today are some of the most highly traded companies, adding the dual counter market makers program – the first such mechanism in the city's equity market – will ensure the liquidity of the renminbi counters. Financial Secretary Paul Chan said the dual counter model is launched at a time when the strategic importance of the mainland currency is rising. "In the first quarter of this year, the proportion of renminbi in cross-border payments and receipts in the mainland had risen to 48 percent, surpassing the US dollar for the first time," he said, adding that it's becoming increasingly prevalent to use the yuan as a settlement currency for international trade and investment.  Chan said while there is still plenty of room for the global use of the renminbi to grow, it is clear that the internationalisation of the currency will "only accelerate" in the future. "Particularly under this rapidly changing global geopolitical environment, which is unseen in a century. Seeking diversification for greater security is on everyone's agenda," he said. The financial secretary said Hong Kong will play a "pivotal role" in this change, as the city has long been an offshore renminbi hub._____________________________
Last updated: 2023-06-19 HKT 17:17 