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

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

FILE PHOTO: The logo of Hong Kong Exchanges & Clearing Ltd. (HKEX) is seen at the financial Central district in Hong Kong, China September 14, 2020. REUTERS/Tyrone Siu/File Photo

HONG KONG : 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 (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 per cent at HK$266.60 on Monday.

Meanwhile, companies including Chinese offshore oil and gas major CNOOC, Hong Kong developers Sun Hung Kai Properties and New World Development say they are considering using the renminbi in stock transactions.

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.

Source: Reuters
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