Hong Kong Introduces RMB Settlement for Stamp Duty on Dual-Counter Stock Transactions

Hong Kong has taken another step in strengthening its position as an international financial centre by introducing new rules that allow stamp duty on eligible dual-counter stock transactions to be settled in Renminbi (RMB).

The legislative amendment forms part of the government's broader strategy to support the development of RMB-denominated financial markets and facilitate the wider use of the Chinese currency in cross-border investment activities.

Under the new framework, investors trading securities listed under the dual-counter model will be able to calculate and pay the corresponding stamp duty directly in RMB. This approach is expected to simplify settlement procedures for market participants operating through the RMB counter while improving operational efficiency.

The reform also supports the continued expansion of Hong Kong's offshore Renminbi ecosystem. By allowing tax obligations to be settled in the same currency used for the underlying transaction, the measure aims to enhance liquidity within RMB trading activities and encourage greater participation in RMB-denominated securities.

Before the new regime becomes operational, market infrastructure providers and relevant authorities will complete the necessary technical and administrative preparations to ensure a smooth implementation.

For businesses, financial institutions and international investors, the development represents another example of Hong Kong's ongoing efforts to modernise its capital markets while reinforcing its role as a gateway between Mainland China and global financial markets.