2023-06-11 11:07:08
© Archyde.com. Chen Maobo: The first batch of 24 stocks included in the “dual counter model” accounted for about 40% of the average daily trading volume of Hong Kong stocks
Zhitong Finance APP was informed that on June 11, Hong Kong Financial Secretary Chen Maobo published a blog stating that the upcoming “Hong Kong dollar-RMB dual-counter model” (dual-counter model) securities trading will promote more offshore RMB in the international market. Efficient flow. The first batch of 24 shares included in the “dual-counter model” list will then be able to be traded in Hong Kong dollars or Renminbi respectively. The two counters will use the same register of shareholders and the same physical stock, and the traded shares will also enjoy the same rights. These 24 stocks cover science and technology, finance, real estate and consumption, accounting for about 40% of the average daily trading volume of Hong Kong stocks, and will provide more investment options for offshore RMB holders in Hong Kong, China and around the world.
Chen Maobo said that in the future, the number of shares that can be traded under the dual-counter model will increase in stages. In order to effectively reduce the price difference between Hong Kong dollar and RMB counters, and at the same time improve the liquidity of RMB counters. The new arrangement will include the establishment of a “dual counter market maker mechanism”. It is reported that 9 exchange participants have been granted dual-counter market maker licenses, and the next step will be to promote the inclusion of RMB-denominated securities in the “Southbound Connect”, so that mainland Chinese investors can directly use onshore RMB funds to buy and sell Hong Kong stocks, reducing Exchange risks that may be faced when funds go south.
Chen Maobo pointed out that Hong Kong, China should continue to improve the richness and convenience of the offshore RMB business market. In addition to helping the internationalization of the RMB, it also meets the needs caused by changes in the international political and economic landscape in recent years. Especially in recent years, geopolitics has become increasingly complicated. The banking industry in the United States has been in turmoil in recent months, the government has been troubled by debt problems for a long time, and it has “monetized” huge fiscal deficits, and even froze or even confiscated assets in other countries. Confidence in foreign exchange has also driven many countries to diversify their foreign exchange reserves.
Chen Maobo also said that the “Swap Link” northbound trading was launched in the middle of last month, which will facilitate foreign investors holding Chinese mainland bonds to buy and sell Chinese mainland interest rate swap products. On the first day of opening, a total of 27 foreign institutions reached an onshore RMB interest rate Swap contract transactions involving a total notional value of over RMB 8.2 billion. He believes that the “Swap Connect” will have a synergistic effect with the “Bond Connect”, which will enhance the depth and breadth of the opening up of the financial market in mainland China.
He said that in the foreseeable future, the international demand for the use of RMB will only continue to increase; and the provision of richer and deeper market products and the deepening of the “interconnection” mechanism will allow Hong Kong, China, to play an important role in the internationalization of the RMB. Play a unique “eye of chess” role in this big chess game and contribute to the development of the country.
Looking forward to the future, Chen Maobo said that he will continue to discuss with the industry and relevant institutions in mainland China to further expand the channels for the two-way circulation of cross-border RMB funds, provide more investment and risk management products, and build a more vigorous offshore RMB ecosystem. The Hong Kong Securities Regulatory Commission, the Hong Kong Stock Exchange and the Hong Kong Monetary Authority are discussing with relevant institutions in mainland China to launch treasury bond futures in Hong Kong, China, and to further improve the RMB financial infrastructure in the offshore market, enhance its carrying capacity, and support the offshore RMB market in Hong Kong, China long-term development.
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