In a bid to revitalize its capital markets and attract more mainland Chinese wealth, Hong Kong has launched a new RMB dual-currency counter model within its Stock Connect program. The reform enables mainland investors to trade eligible Hong Kong stocks directly in offshore renminbi, aiming to boost liquidity and financial integration.
On July 22, 2025, the Hong Kong Exchanges and Clearing (HKEX) officially activated the RMB Dual Counter Model within its Stock Connect program, marking a significant leap forward in cross-border capital market reform. The initiative allows eligible stocks listed in Hong Kong to be traded in both Hong Kong dollars (HKD) and offshore renminbi (CNH), offering a more seamless path for mainland investors seeking diversification and currency exposure.
The move is part of a broader effort to internationalize the RMB and reinforce Hong Kong’s status as the premier financial bridge between mainland China and global capital. Over 20 blue-chip companies, including Tencent, HSBC, and AIA, are now accessible under this model. Investors from the mainland can use RMB to directly buy these stocks without foreign exchange conversion, which also reduces transaction friction.
For wealth managers, this reform unlocks new product structuring opportunities, especially for RMB-based portfolios and cross-border ETFs. Analysts expect a gradual but meaningful increase in RMB-denominated trading volumes in Hong Kong over the next 12–24 months.
Experts see this as a strategic step for both Hong Kong and Beijing. As global scrutiny of Chinese capital grows and US-China tensions remain unresolved, facilitating RMB circulation outside mainland China becomes a hedge against external financial pressure. At the same time, it deepens integration between Hong Kong’s capital markets and the mainland's vast investor base.
However, some skeptics caution that the real impact depends on liquidity buildup and investor education. If successful, the RMB dual counter model could serve as a blueprint for further offshore RMB financial instruments.
FAQs
Q1: What is the RMB dual counter model in Stock Connect?
It allows eligible Hong Kong-listed stocks to be traded in both HKD and offshore RMB (CNH), providing currency flexibility to mainland investors.
Q2: Why is this important for mainland Chinese investors?
They can now invest in major Hong Kong companies directly using RMB, avoiding FX fees and enabling smoother portfolio management.
Q3: Which stocks are available under this model?
Blue-chip companies such as Tencent, AIA, HSBC, and others with high mainland demand are currently included.
Q4: How will this affect Hong Kong’s financial market?
It’s expected to attract more RMB liquidity and strengthen Hong Kong’s role as a gateway for cross-border wealth flow.
Q5: Are there any risks to this model?
Initial challenges include building sufficient RMB trading volume and investor familiarity with the system.
Editor's Note
Hong Kong’s RMB dual counter reform may seem technical, but its implications are geopolitical and economic. By simplifying cross-border flows, it signals the city’s resilience and Beijing’s long-term play for RMB globalization.
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Hong Kong Stock Connect
RMB dual currency
offshore RMB investment
HKEX reforms
China capital markets
cross-border wealth flow
Asian financial news
Hong Kong stock market
mainland investor access
RMB internationalization