This photo taken on April 11, 2023 shows the gate to the Hong Kong Monetary Authority in Central, Hong Kong. (CALVIN NG / CHINA DAILY)

HONG KONG - The Hong Kong Monetary Authority on Tuesday welcomed the impending launch of the HKD-RMB Dual Counter Model and the Dual Counter Market Making Programme on June 19.

The HKMA said in a statement that it has been working closely with the Securities and Futures Commission and Hong Kong Exchanges and Clearing Limited to promote the issuance and trading of RMB-denominated securities in the Hong Kong Special Administrative Region.

The Dual Counter Market Makers will offer buy and sell quotes for RMB-denominated securities trading, providing liquidity to the RMB counter and narrowing the price differential between the dual counters

The SFC and HKEX recently issued the relevant implementation details, providing guidance for the industry on participating in the Dual Counter Model.

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“The launch of the HKD-RMB Dual Counter Model and the Dual Counter Market Making Programme is a significant step towards developing a diversified range of RMB-denominated products in Hong Kong,” Chief Executive of the HKMA Eddie Yue Wai-man was quoted as saying in the statement.

“The initiatives will facilitate the use of the RMB in equity trading in Hong Kong and further expand the RMB investable universe, thereby reinforcing Hong Kong's role as the leading offshore RMB business hub," he added.

The Dual Counter Market Makers will offer buy and sell quotes for RMB-denominated securities trading, providing liquidity to the RMB counter and narrowing the price differential between the dual counters. 

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The HKMA said it will continue to work with relevant HKSAR and Chinese mainland regulators and market participants to promote the development of the offshore RMB market in the SAR, including enhancing offshore RMB liquidity, expanding the range of offshore RMB products and enhancing Hong Kong's financial infrastructure.