Hong Kong plans to waive stamp duty on some HKD/RMB dual counter trading

Sun Hung Kai Properties

03/10/2022 10:18

HONG KONG, Oct 3 (Reuters) - The Hong Kong government
said on Monday it plans to waive stamp duty on specified stock
transactions conducted by market makers for dual counter trading
as it looks to support the development of dual Hong Kong dollar
and renminbi counter trading for Hong Kong-listed equities.
    Christopher Hui, secretary for financial services and the
treasury, said relevant legislative amendments are being
prepared aimed at allowing the Hong Kong bourse to launch dual
currencies counter trading for specified stock transactions in
the first half of 2023.
    Hong Kong Exchanges and Clearing  0388.HK  (HKEx) said it
welcomes the announcement, among other incentives to support the
development of the dual HKD-RMB counter for Hong Kong-listed
equities. 
    "This will play an important part in driving the
attractiveness of the Dual Counter Market Making programme that
we are developing," HKEx said, adding the move will support
development of Hong Kong as an offshore yuan funding hub.
    The news pulled HKEx shares off an over two-year low of
HK$263 though they still lost ground, finishing down 1.1% at
HK$266.60 on Monday.
    Meanwhile, companies including Chinese offshore oil and gas
major CNOOC  0883.HK , Hong Kong developers Sun Hung Kai
Properties  0016.HK  and New World Development  0017.HK  say
they are considering using the renminbi in stock transactions.
 urn:newsml:reuters.com:*:nP8N2ZK055 urn:newsml:reuters.com:*:nP8N30R04C
    Last month, China's securities regulator also said it would
work with Hong Kong financial regulators to expand the
China-Hong Kong Stock Connect scheme which will attract more
companies to list in the city.  urn:newsml:reuters.com:*:nL1N3090HP
 (Reporting by Donny Kwok and Twinnie Siu; editing by Jason
Neely)
 ((donny.kwok@thomsonreuters.com; +852 3462 7745;))