Hong Kong Stock Exchange To Inaugrate Dual Counter Trading Model

Investors will be able to start exchanging assets listed on both 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 indicated plans to change the current trading format late last year in order to streamline the trading process for an increasing number of Chinese companies with U.S. listings that are executing secondary or primary listings in Hong Kong.

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

HKEX CEO Nicolas Aguzin emphasised the advantages of these most recent actions, saying, "It will give issuers and investors more choice, it will enrich Hong Kong's RMB products ecosystem... and it will support the ongoing internationalisation of 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 large corporations, 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 testing sessions would be held between May and June to kick-start the launch preparations and help market players trading under the model.