Hong Kong Stock Exchange: Section 8 of the Hong Kong Settlement Operating Procedure Rules with respect to stamp duties arising from proposed takeovers continues to be calculated and paid in Hong Kong dollars

The Zhitong Finance App learned that on September 14, the Hong Kong Stock Exchange published a notice on the introduction of arrangements for payment of stamp duty in RMB, the Hong Kong Securities and Futures Commission transaction levy, the Hong Kong Accounting and Financial Reporting Council transaction levy, investor compensation levy (currently suspended), and the Hong Kong Stock Exchange transaction fee (collectively, “transaction-related fees”). For the avoidance of doubt, stamp duty arising from the proposed takeover in accordance with section 8 of the Hong Kong Settlement Procedure Rules will not be affected by the above RMB payment arrangement and will continue to be calculated and paid in Hong Kong dollars according to the current arrangement.

In terms of the scope of applicable securities, according to the “Stamp Duty (Amendment) (No. 2) Regulations 2026” (the “Amendment Regulations”), stamp duty generated by double-counter securities transactions carried out at RMB counters will be calculated and paid in RMB.

In line with the Amendment Regulations and subject to regulatory approval:

(a) The Hong Kong Stock Exchange will arrange for transaction related fees arising from trading at the RMB counter for dual-counter securities to be paid in RMB; and

(b) In order to maintain a consistent payment framework, transaction-related fees arising from transactions at the RMB counter of multi-counter ETFs and real estate investment trusts currently exempt from stamp duty will also be paid in RMB.

For the avoidance of doubt, stamp duty and/or transaction related fees arising from transactions conducted at non-RMB counters and securities transactions with only a single RMB counter will continue to be calculated and paid in Hong Kong dollars.

Notwithstanding the above arrangement, stamp duty arising from the proposed acquisition of dual-counter securities in accordance with section 8 of the Rules of Procedure of Hong Kong Central Clearing Limited will continue to be calculated and paid in Hong Kong dollars according to the current arrangement.

According to the circular, the measure is scheduled to be introduced in mid-2027 and is subject to the Government's announcement of the effective date of the Amendment, obtaining regulatory approval and market preparations. To support implementation, the Hong Kong Stock Exchange plans to conduct market tests in the second quarter of 2027. Further details on the testing schedule will be announced in due course.

Exchange participants currently trading or intending to trade securities applicable to RMB stamp duty and transaction related fee arrangements should ensure that appropriate RMB settlement arrangements have been established prior to the above market testing, including opening a designated RMB bank account.