Hong Kong exchange to roll out new dual counter model in June
Reuters
Published May 19, 2023 05:28AM ET
(Reuters) - The Hong Kong Stock Exchange said on Friday it would launch the new dual counter trading model on June 19, wherein investors would be able to begin interchanging securities listed in both Hong Kong dollar and renminbi counters.
The bourse operator had late last year disclosed plans to amend the existing model of trading in place to simplify the trading process for a growing number of U.S.-listed Chinese firms conducting secondary or primary listings in Hong Kong.
The dual counter market making programme in its securities market, which is expected to spur the liquidity of renminbi counters and cut down on price differences, will also be rolled out on June 19, the exchange operator said in a filing.
Highlighting the benefits of these latest measures, HKEX CEO Nicolas Aguzin said, "It will give issuers and investors more choice, it will enrich Hong Kong's RMB products ecosystem... and it will support the ongoing internationalization of RMB."
HKEX added that it would reveal the initial list of dual counter securities and dual counter market makers in due course.
A number of major companies including Ping An Insurance Group Co of China Ltd,, AIA Group (OTC:AAGIY) and Tencent have already submitted their applications for a dual currency counter.
Separately, a series of testing rounds would be conducted between May and June to jumpstart the preparation for the launch and to support market participants trading under the model, HKEX said.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.