HKEX Clears RMB Fee Barrier As Hong Kong Prepares…
Hong Kong Exchanges and Clearing Limited is preparing to let investors pay stamp duty and other trading-related charges in renminbi when buying shares through Hong Kong’s RMB counters, removing a currency-conversion obstacle as the city works toward bringing those securities into Southbound Stock Connect.
The change follows the publication of the Stamp Duty (Amendment) (No. 2) Ordinance 2026 in the Hong Kong Government Gazette on July 17. The legislation provides for stamp duty on transactions completed through the RMB counter of eligible dual-counter stocks to be calculated and paid directly in RMB. The government previously said the arrangement should help increase turnover and liquidity in the RMB counter by allowing investors to settle both the trade and its associated tax in the same currency. :contentReference[oaicite:0]{index=0}
HKEX said it will extend the same treatment beyond stamp duty by facilitating RMB settlement of the Securities and Futures Commission transaction levy, the Accounting and Financial Reporting Council transaction levy, the currently suspended Investor Compensation Levy and the trading fee payable to the exchange.
The operational change appears technical, but it addresses an important friction in Hong Kong’s effort to make RMB-denominated equities easier to trade. An investor using the RMB counter could previously complete the securities transaction in renminbi while some taxes or market charges were calculated or collected through processes involving the Hong Kong dollar. Aligning the trade, tax and exchange fees in one currency should simplify settlement for brokers, investors and clearing participants.
HKEX Moves Closer To Southbound RMB Trading
The larger objective is the eventual inclusion of RMB counters in Southbound Stock Connect, which would allow eligible Mainland investors to purchase Hong Kong-listed shares directly in renminbi rather than converting funds into Hong Kong dollars.
HKEX Chief Operating Officer Vanessa Lau said the legislative approval was an important step toward increasing RMB use across the securities market.
“By aligning the payment currency of stamp duty and Trading-Related Fees for transactions under the RMB counter, it will increase market accessibility for investors using RMB globally and pave the way for future inclusion of the RMB counter into Southbound trading under Stock Connect.”
She added that HKEX would continue working with regulators and market participants to expand Hong Kong’s RMB product ecosystem and support the currency’s international use.
Southbound Stock Connect currently gives eligible Mainland investors access to selected Hong Kong-listed securities, but expanding the system to RMB counters would remove a foreign-exchange step from those transactions. Mainland investors could potentially invest existing RMB balances in Hong Kong equities while avoiding the need to convert into Hong Kong dollars and later convert proceeds back into renminbi.
HKEX has described the dual-counter framework as groundwork for permitting Mainland investors to trade RMB-denominated Hong Kong securities through the southbound channel. :contentReference[oaicite:1]{index=1}
Dual-Counter Model Has Been In Place Since 2023
HKEX launched its Hong Kong dollar-renminbi Dual Counter Model in June 2023. Under the system, the same class of shares can trade through separate HKD and RMB counters, while retaining the same shareholder rights and remaining fully interchangeable between the two counters.
Market makers provide buy and sell quotations in eligible RMB counters to support liquidity and reduce pricing differences between the two currencies. The model is intended to let issuers tap both Hong Kong dollar and renminbi liquidity while giving investors greater choice over the currency used for trading and settlement. :contentReference[oaicite:2]{index=2}
However, creating an RMB trading counter does not by itself guarantee meaningful activity. Investors also need sufficient liquidity, competitive spreads and a settlement process that does not introduce avoidable currency conversions or administrative complexity. Allowing stamp duty and other fees to be paid in RMB removes one of those inconsistencies.
The Hong Kong Government said when the legislation was introduced that investors would be able to settle both their transactions and the associated stamp duty at the same RMB counter. It expects the measure to support RMB-counter turnover and strengthen the currency’s function as an international investment currency. :contentReference[oaicite:3]{index=3}
Hong Kong Expands Its Offshore RMB Role
The initiative also supports Hong Kong’s position as the main offshore centre for renminbi financing, investment and settlement. China has promoted wider use of its currency in cross-border trade and capital markets while maintaining controls over the domestic capital account. Hong Kong provides a controlled bridge through which international investors can access Chinese assets and Mainland investors can gain exposure to eligible offshore securities.
Stock Connect has become one of the central pieces of that structure. Its northbound channel provides international access to Mainland-listed shares, while the southbound channel channels Mainland capital toward Hong Kong-listed companies. Adding RMB counters to the southbound framework would deepen that connection without requiring investors to leave the Chinese currency for the execution and settlement of each transaction.
The measure may also encourage more Hong Kong-listed companies to establish RMB counters if issuers believe direct access to Mainland RMB liquidity will support trading volumes. That would expand the number of securities available under the model and could make the RMB counter more useful as a market rather than merely an alternative quotation line.
Implementation Date Has Not Been Set
The legislation’s publication does not mean the new settlement arrangement will begin immediately. HKEX is carrying out system upgrades with government authorities, regulators and market participants to support RMB payments for stamp duty and the additional trading charges.
The Hong Kong Government will set the commencement date through a separate Gazette notice after the required preparations have been completed. Implementation will also depend on regulatory approval and market readiness. The government had already indicated that the delayed commencement was intended to give HKEX, public departments and the financial industry time to adapt their systems. :contentReference[oaicite:4]{index=4}
HKEX said further operational details and a target implementation timetable will be announced later.
The immediate effect is therefore limited, but the direction is clear. Hong Kong is gradually building the tax, trading and settlement infrastructure required for RMB-denominated shares to operate alongside the existing Hong Kong dollar market and, eventually, become accessible to Mainland investors through Stock Connect.