Hong Kong LegCo Passes Stamp Duty Amendment: Dual-Counter RMB Trades to Be Denominated and Paid in RMB
N.R. Finch
Hong Kong's Legislative Council on July 8 passed a stamp duty amendment requiring dual-counter securities traded on the RMB counter to have stamp duty calculated and paid in renminbi. This means the RMB counter's settlement loop will fully close, a move aimed at boosting RMB-denominated trading liquidity.
What exactly changed?
The core change: for dual-counter securities, stamp duty on RMB-counter trades must now be calculated and paid in renminbi.
This means → investors trading on the RMB counter no longer need to convert their stamp duty back into Hong Kong dollars — the trade and the tax settle in the same currency.
In plain terms = before, you bought shares in renminbi but paid the tax in HK dollars; now both happen in renminbi, end to end.
Why is the government pushing this?
A government spokesperson stated the measure aims to raise turnover and liquidity on the RMB counter.
This means → removing the currency-conversion friction should keep more capital on the RMB counter, lifting trading volume in RMB-denominated stocks.
This reflects a broader signal: the government also cited strengthening the renminbi's role as an international investment currency — not just a technical convenience, but a policy move to reinforce Hong Kong's position as the offshore RMB hub.
When does it take effect?
The amendment will be gazetted on July 17, but the exact implementation date has not been set.
The Secretary for Financial Services and the Treasury will announce the go-live date separately, pending system upgrades by HKEX, brokerages, and related agencies.
In plain terms = the legal framework is locked in, but the plumbing isn't ready yet — it only goes live once officially gazetted as effective.
Content is for reference only, not financial advice.