HKD-RMB Dual Counter Model in Hong Kong’s stock market

Rossana Chu • 21 June 2023

Rossana Chu

Partner, Hong Kong

HKD-RMB Dual Counter Model in Hong Kong’s stock market

The Hong Kong Dollar (HKD)-Renminbi (RMB) Dual Counter Model was launched in the Hong Kong stock market on 19 June 2023.

The first batch covers 24 companies[1] which already have their shares listed on the Main Board of the Hong Kong Stock Exchange and traded in HKD. Under the new model, investors may now also trade those shares by using their offshore RMB (that is, the RMB circulating outside Mainland China) on the RMB counter. The rights, entitlements, status and par value (if applicable) of the shares in both counters are the same. The difference lies in the currency with which the shares can be traded in each counter. All shares in either counter are fully interchangeable to another counter. A Dual Counter Market Making programme has been introduced in order to provide liquidity for the RMB counter and minimize price discrepancies between the two counters.

The 24 companies cover industries in technology, finance, properties and consumer products, and account for about 40% of the average daily turnover of Hong Kong's stock market.

Although China is the world’s largest trading nature, the proportion of trade payment settlement in RMB is rather low at the moment. Hong Kong as a global hub for offshore RMB business can play an active role in furthering the internationalization of RMB by introducing more RMB-denominated investment products and thus widening the uses of offshore RMB in the international markets. The introduction of the Dual Counter Model is one of such measures. Other recent initiatives included the launch of RMB interest rate swaps in May 2023 and the issue of RMB tranches of green bonds in June 2023.

The Financial Secretary of Hong Kong also indicates that the securities traded on the RMB counter may be included under the Southbound Trading of the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connects, so that Mainland investors can reduce exchange rate risks when they trade Hong Kong listed securities^[2]. This will help increasing the trading volume of the securities eligible to be traded in dual counters.

Footnotes:

YYC Legal LLP is in Association with East & Concord Partners (Hong Kong) Law Firm.

This material has been prepared for general informational purposes only and is not intended to be relied upon as professional advice. Please contact us for specific advice.

New open market requirements and IPO offering mechanisms in Hong Kong

by Rossana Chu • 5 December 2025

HKEx implemented a series of reforms on optimising IPO price discovery and open market requirements, it is also seeking public view on its public float proposals.

Hong Kong’s Stablecoins Ordinance Takes Effect

by Sam Wu • 31 October 2025

The Stablecoins Ordinance officially took effect on 1 August 2025, establishing a comprehensive licensing regime and regulatory framework for the issuance and offering of specified stablecoins.

Hong Kong proposes enhancements to regulate money lenders

by Rossana Chu, Beverly Fu • 10 October 2025

The HK government has launched a public consultation on enhancements to regulate licensed money lenders to address increasing concerns on excessive personal loans.

An Update on the rules governing Independent Non-Executive Directors in Hong Kong

by Valarie Fung • 15 August 2025

In Hong Kong, independent non-executive directors have an increasingly important role to play in corporate governance. New rules and proposals are intended to further enhance the function and role of INEDs on the board.

Hong Kong’s initiatives to accelerate tokenisation of real-world assets

by Rossana Chu, Sam Wu • 30 June 2025

The Hong Kong Government holds a positive attitude towards embracing financial technology moving forward, and strives to provide a technology-neutral regulatory environment that encourages innovation without compromising market integrity.

Overview of Hong Kong’s Stablecoins Bill

by Sam Wu • 6 June 2025

On 18 December 2024, the Stablecoins Bill was introduced into the Legislative Council of Hong Kong for the first reading, and is expected to be operational in the coming months. The successful implementation of the Stablecoins Bill could pave the way for a more robust and secure digital currency landscape in Hong Kong and beyond.