Q1. What is a double counter? Eligible securities have both HKD and RMB trading counters for investors to trade
“HKD/RMB Dual Counter Model” (hereinafter referred to as “double counter”) is a collective term for the HKD/RMB dual counter transaction process, bookmaker activity and settlement model. Under the dual counter model, eligible securities have two trading counters for Hong Kong dollars and RMB at the same time, and investors can trade and settle in the two currencies of Hong Kong dollars and RMB respectively.
The securities under the two counters are in the same category of securities. There is no difference in equity. The securities on the two counters can be converted to each other without changing beneficial ownership, and there is a two-counter bookmaker mechanism to solve the problems of liquidity and price differences between the two counters.
Q2. Who can participate in dual counter trading, and can Hong Kong Stock Connect participate? Currently for Hong Kong or overseas investors, the next stage, which may include the Hong Kong stock and Hong Kong stock dual counter model, will be promoted in stages. At the beginning of the launch, it will mainly focus on Hong Kong or overseas investors. Currently, mainland investors are unable to immediately participate in the dual counter model through the Hong Kong Stock Connect. According to the briefing released by the Hong Kong Stock Exchange in January, the dual counter model under Hong Kong Stock Connect trading will be implemented in the next phase, but the exact implementation schedule still needs to be further arranged.
Q3. Which companies can apply for a double counter? Hong Kong stock companies that meet market capitalization and liquidity requirements can add RMB counters; currently there are 24
Hong Kong stock companies that meet market capitalization and liquidity requirements can set up additional RMB counters. Eligible securities are designated by the Hong Kong Stock Exchange and have Hong Kong dollar and RMB counters,...