The Hong Kong Stock Exchange's “HKD-RMB Dual Counter Model” has been running smoothly for nearly two years since it was launched on June 19, 2023. Recently, the Chief Executive of the Hong Kong Securities Regulatory Commission, Leung Fung-yee and many other Hong Kong supervisory authorities said that they are actively promoting the inclusion of the Hong Kong Stock RMB counter in Hong Kong Stock Connect, and this mechanism is expected to be launched before the end of the year. Industry insiders believe that the inclusion of RMB counters in Hong Kong Stock Connect will help expand RMB asset allocation channels, reduce the risk of exchange rate fluctuations for Hong Kong Stock Connect investors, and are particularly beneficial for long-term allocation of funds. The “dual counter model” helps the Hong Kong stock market connect to the offshore RMB liquidity pool. This pool is expected to continue to invest in Hong Kong stocks denominated in RMB, providing related companies with offshore financing methods with less exchange risk and lower interest rate costs.

The Hong Kong Stock Exchange's “HKD-RMB Dual Counter Model” has been running smoothly for nearly two years since it was launched on June 19, 2023. Recently, the Chief Executive of the Hong Kong Securities Regulatory Commission, Leung Fung-yee and many other Hong Kong supervisory authorities said that they are actively promoting the inclusion of the Hong Kong Stock RMB counter in Hong Kong Stock Connect, and this mechanism is expected to be launched before the end of the year. Industry insiders believe that the inclusion of RMB counters in Hong Kong Stock Connect will help expand RMB asset allocation channels, reduce the risk of exchange rate fluctuations for Hong Kong Stock Connect investors, and are particularly beneficial for long-term allocation of funds. The “dual counter model” helps the Hong Kong stock market connect to the offshore RMB liquidity pool. This pool is expected to continue to invest in Hong Kong stocks denominated in RMB, providing related companies with offshore financing methods with less exchange risk and lower interest rate costs.