Hong Kong Exchanges and Clearing has submitted an application to launch a renminbi (RMB) counter for trading of HKEX shares as part of the new Hong Kong Dollar (HKD)-RMB dual counter model.
This will allow investors to seamlessly interchange between securities listed in both HKD and RMB, offering a choice of trading currency and the potential to access new liquidity.
“The addition of an RMB counter for the trading of HKEX shares underscores our commitment to the dual counter model’s successful rollout,” said Nicolas Aguzin, chief executive officer at HKEX. “This new programme offers investors more choice, greater flexibility and the opportunity to tap into new liquidity pools.”
HKEX said the launch date for the initiative will be announced in “due course.”
HKEK recently announced the launch of a new HKD-RMD dual counter model in the securities market and a new dual counter market making programme to support liquidity of RMB counters and minimise discrepancies between the two counters.
Earlier in March, HKEX said it will open an office in London in the first half of 2023 to help promote its international equities franchise as well as its connectivity with mainland China’s capital markets, and its expanding derivatives product suite.
It also said the move will provide the group’s European clients with on-the-ground expertise and insight into Hong Kong’s capital market opportunities and innovations.
The announcement follows the UK FCA’s approval of the HKEX subsidiaries – the Stock Exchange of Hong Kong and the Hong Kong Futures Exchange – as recognised overseas investment exchanges.
The new office will be overseen by head of EMEA business Development, Raymond Wong, who will report to Kevin Rideout, HKEX co-head of sales and marketing.
The markets operator recently published its financial results for 2022, reporting a 12% fall in revenue for the year but strengthening the numbers in the fourth quarter.
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