On June 19, 2023, the Hong Kong Stock Exchange’s “Hong Kong Dollar-RMB Dual Counter Model” (referred to as the “Dual Counter Model”) was officially launched, providing issuers and investors with the choice of Hong Kong dollar and RMB denominated stocks. Ping An of China announced that the addition of the RMB counter to the company’s H shares will come into effect on June 19. One of the stocks of H-share listed companies under the “Hong Kong dollar-RMB dual counter model”.
It is reported that dual-counter securities refer to securities designated by the Hong Kong Stock Exchange that have Hong Kong dollar and RMB counters and are eligible for the dual-counter market maker (“DCMM”) scheme. DCMM plans to support cross-counter trading of dual-counter securities to provide liquidity and minimize price differences between the two counters, while introducing an “Intraday Dual-Counter Settlement Conversion Requirement” (“ICI”) to simplify settlement for settlement participants process. The entire transaction process, banker activities and settlement mode (including the swap function) are collectively referred to as the “dual counter mode”.
Yao Jiaren, co-chief operating officer and head of equity securities of HKEX, said that under the dual-counter model, issuers can provide investors with the choice of RMB-denominated stocks, promote the use of RMB in Hong Kong stock transactions, and open up new potential channels for RMB circulation. In the future, more RMB assets will be priced in Hong Kong, an international market, laying a good foundation for promoting RMB internationalization. In the future, if the RMB trading counter is connected to Hong Kong Stock Connect, it will help Hong Kong Stock Connect investors reduce the risk of intraday exchange rate fluctuations.
There are currently 24 dual-counter securities that have been approved, and their Hong Kong dollar counter transactions account for about 40% of the average daily trading volume of the Hong Kong market. According to public information, the first list of 24 securities includes Hang Seng Bank, Sun Hung Kai Properties, Shangtang-W, Geely Automobile, China Resources Beer, Hong Kong Stock Exchange, Tencent Holdings, CNOOC, China Mobile, Lenovo Group, Kuaishou-W, AIA Insurance, Xiaomi Group-W, Anta Sports, Li Ning, Bank of China Hong Kong, Meituan-W, JD Health, JD Group-SW, Baidu Group-SW, Alibaba-SW, BYD, Ping An and Great Wall Motor.
Data show that in 2022, the RMB trade settlement volume handled by Hong Kong will reach 9.3 trillion yuan, and the scale of offshore RMB bond issuance in Hong Kong will reach 330.8 billion yuan. As of the end of March this year, there were about 950 billion yuan in RMB deposits in Hong Kong, and about 75% of global offshore RMB payments were processed in Hong Kong. Hong Kong continued to provide liquidity support for global offshore RMB transactions and financial activities.
Ping An of China stated that since the company was listed on the Hong Kong Stock Exchange in 2004, it has always adhered to the mission and responsibility of creating value for shareholders. The launch of the dual-counter model is an important milestone in the development of Hong Kong’s capital market. It will further consolidate Hong Kong’s position as the world‘s largest offshore RMB center and promote the process of RMB internationalization. In the future, Ping An will continue to promote the steady growth of corporate value guided by value maximization, and continue to repay the trust and support of shareholders.Return to Sohu to see more
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