Hong Kong Exchanges and Clearing (HKEX) has officially launched the dual-currency stock connect mechanism, allowing mainland investors to trade selected Hong Kong blue-chip stocks using offshore renminbi (CNH) in addition to the Hong Kong dollar. Companies such as Tencent, HSBC, and AIA are among the first to be included in the scheme.
The reform reduces currency conversion costs and is expected to boost liquidity in RMB-denominated transactions over the next 12–24 months. Wealth managers believe this will create more opportunities for RMB portfolios and cross-border ETF design.
Analysts describe the program as a significant step in internationalizing the RMB while strengthening Hong Kong’s role as a global financial hub. Still, challenges remain, including ensuring sufficient market liquidity and educating investors about the new framework.
