Hong Kong Exchanges and Clearing Limited is preparing to let investors pay stamp duty and trading-related charges in renminbi when buying shares through Hong Kong's RMB counters, following the publication of the Stamp Duty (Amendment) (No. 2) Ordinance 2026 in the Hong Kong Government Gazette on July 17. The change removes a currency-conversion obstacle as the city works toward bringing those securities into Southbound Stock Connect. The legislation provides for stamp duty on transactions completed through the RMB counter of eligible dual-counter stocks to be calculated and paid directly in RMB, with HKEX extending the same treatment to Securities and Futures Commission transaction levy, Accounting and Financial Reporting Council transaction levy, the currently suspended Investor Compensation Levy, and the trading fee payable to the exchange.
HKEX Extends RMB Settlement to Trading Fees and Levies
HKEX said it will facilitate RMB settlement of the Securities and Futures Commission transaction levy, the Accounting and Financial Reporting Council transaction levy, the currently suspended Investor Compensation Levy and the trading fee payable to the exchange. An investor using the RMB counter could previously complete the securities transaction in renminbi while some taxes or market charges were calculated or collected through processes involving the Hong Kong dollar. The government previously said the arrangement should help increase turnover and liquidity in the RMB counter by allowing investors to settle both the trade and its associated tax in the same currency.
HKEX Chief Operating Officer Links Change to Stock Connect Expansion
HKEX Chief Operating Officer Vanessa Lau said the legislative approval was an important step toward increasing RMB use across the securities market. "By aligning the payment currency of stamp duty and Trading-Related Fees for transactions under the RMB counter, it will increase market accessibility for investors using RMB globally and pave the way for future inclusion of the RMB counter into Southbound trading under Stock Connect," Lau said. She added that HKEX would continue working with regulators and market participants to expand Hong Kong's RMB product ecosystem and support the currency's international use.
Southbound Stock Connect currently gives eligible Mainland investors access to selected Hong Kong-listed securities. HKEX has described the dual-counter framework as groundwork for permitting Mainland investors to trade RMB-denominated Hong Kong securities through the southbound channel.
Dual-Counter Model Launched in June 2023
HKEX launched its Hong Kong dollar-renminbi Dual Counter Model in June 2023. Under the system, the same class of shares can trade through separate HKD and RMB counters, while retaining the same shareholder rights and remaining fully interchangeable between the two counters. Market makers provide buy and sell quotations in eligible RMB counters to support liquidity and reduce pricing differences between the two currencies. The model is intended to let issuers tap both Hong Kong dollar and renminbi liquidity while giving investors greater choice over the currency used for trading and settlement.
Implementation Date Not Yet Set by Hong Kong Government
The legislation's publication does not mean the new settlement arrangement will begin immediately. HKEX is carrying out system upgrades with government authorities, regulators and market participants to support RMB payments for stamp duty and the additional trading charges. The Hong Kong Government will set the commencement date through a separate Gazette notice after the required preparations have been completed. The government had already indicated that the delayed commencement was intended to give HKEX, public departments and the financial industry time to adapt their systems. HKEX said further operational details and a target implementation timetable will be announced later.
FAQ
What did the Stamp Duty (Amendment) (No. 2) Ordinance 2026 change for Hong Kong stocks?
The ordinance, published in the Hong Kong Government Gazette on July 17, provides for stamp duty on transactions completed through the RMB counter of eligible dual-counter stocks to be calculated and paid directly in RMB. HKEX extended the same treatment to the Securities and Futures Commission transaction levy, the Accounting and Financial Reporting Council transaction levy, the currently suspended Investor Compensation Levy, and the trading fee payable to the exchange.
Why is HKEX aligning RMB payment for stamp duty and trading fees?
HKEX Chief Operating Officer Vanessa Lau said the change will increase market accessibility for investors using RMB globally and pave the way for future inclusion of the RMB counter into Southbound trading under Stock Connect. The government previously said the arrangement should help increase turnover and liquidity in the RMB counter by allowing investors to settle both the trade and its associated tax in the same currency.
