Photo taken on July 31, 2021 shows the statues on the square of Hong Kong Exchanges and Clearing Limited (HKEX) in south China's Hong Kong. (Xinhua/Wu Xiaochu)
BEIJING, June 15 (Xinhua) -- The Hong Kong dollar (HKD)-Renminbi (RMB) dual counter model, scheduled to be launched on June 19, is expected to help foster the market growth and innovation, reported China News Service citing Laura Cha Shih May-lung, chairperson of the Hong Kong Exchanges and Clearing Limited (HKEX) on Wednesday.
The chairperson made the remarks at the HKEX 23rd anniversary celebration held on June 14, saying that HKEX will get prepared for the future and continuously optimize its basic measures and develop new products.
The new HKD-RMB dual-counter trading will allow investors to trade securities of the same issuer in either currency and to interchange securities listed in both HKD and RMB counters. Securities under the two counters are of the same class and holdings of securities in the two counters can be transferred without change of beneficial ownership.
Next, the inclusion of RMB-denominated securities under Southbound Connect will be pressed ahead with so that investors from the Chinese mainland can trade Hong Kong shares with onshore RMB, added Paul Chan, Financial Secretary of China's Hong Kong Special Administrative Region (HKSAR) government.
By Wednesday, 24 companies have decided to participate in the new dual counter model.
Nicolas Aguzin, chief executive officer with HKEX said that related turnover on June 19 may not be notably large given the normal market fluctuations and it will take time for the new model to function well as a long strategy.
Forging ahead for years, HKEX saw the number of listed companies grow from about 800 ones at the initial stage to nearly 2600 ones at present and their market capitalization (market cap) ballooned to around 35 trillion Hong Kong dollars. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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