HK Dollar- Renmenbi dual counter model on HKEX The Hong Kong | Rakuten Trade Ideas 🎯

HK Dollar- Renmenbi dual counter model on HKEX

The Hong Kong Exchanges and Clearing (HKEX) has announced that it will launch the “Hong Kong dollar-RMB dual-counter model” in the Hong Kong stock market on June 19. The HKEX also has approved 21 firms, including Chinese technology giants Tencent Holdings, Alibaba Group Holdings, Xiaomi and Meituan, for yuan share trading counters.

Based on stock-exchange data, these 21 firms had a total market capitalization of HKD12 trillion (US$154 billion) at the market close on Monday and represent 35% of Hong Kong’s total market capitalization.

The HKEX’s CEO, Nicolas Aguzin, mentioned that the dual-currency counters will offer investors the choice of trading in Hong Kong dollars or yuan, and the two categories of shares will be fungible. He says the new dual-counter model is another critical milestone in developing Hong Kong’s capital markets. It will give issuers and investors more choices, enrich Hong Kong’s yuan-produce ecosystem, cement its role as the world’s leading offshore yuan hub, and support the ongoing internationalization of the yuan.

Hong Kong has close to 1 trillion yuan in deposits, which will be sufficient for local investors looking to trade yuan shares for better returns.

The list below are the 21 firms approved by the HKEX for the dual-currency counter: -

Hang Seng Bank Ltd (11-HK) YTD -15.25%
Sun Hung Kai Properties Ltd (16-HK) YTD -3.84%
Sense Time Group Inc (20-HK) YTD -3.60%
Geely Automobile Holdings Ltd (175-HK) YTD -16.32%
China Resources Beer Holdings Co Ltd (291-HK) YTD -4.95%
Hong Kong Exchanges & Clearing Ltd (388-HK) YTD -8.54%
Tencent Holdings Ltd (700-HK) YTD +5.79%
CNOOC Ltd (883-HK) YTD +22.24%
China Mobile Ltd (941-HK) YTD +22.13%
Lenovo Group Ltd (992-HK) YTD +17.16%
Kuaishou Technology (1024-HK) YTD -17.73%
AIA Group Ltd (1299-HK) YTD -7.89%
Xiaomi Corp (1810-HK) YTD +1.10%
ANTA Sports Products Ltd (2020-HK) YTD -17.45%
Li Ning Co Ltd (2331-HK) YTD -30.26%
Bank of China Ltd (3988-HK) YTD +11.27%
Meituan (3690-HK) YTD -29.31%
JD Health International Inc (6618-HK) YTD -28.59%
JD.com Inc (9618-HK) YTD -34.51%
Baidu Inc (9888-HK) YTD +18.53
Alibaba Group Holding Ltd (9988-HK) YTD -2.55%

Sources: SCMP, Bloomberg, HKEX

As at 9am, Hang Seng Index 19,252 (+0.80%).

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