Xu Zhengyu: The stamp duty for securities traded on the renminbi counter must be calculated and paid in renminbi.

On June 10, the Secretary for Financial Services and the Treasury of Hong Kong, Christopher Hui Ching-yu, moved the second reading of the Stamp Duty (Amendment) (No. 2) Bill 2026 at a meeting of the Legislative Council. Hui proposed amending the Stamp Duty Ordinance to specify that stamp duty for dual counter securities transactions in Renminbi must be calculated and paid in Renminbi. As for other fees, including those imposed by the Securities and Futures Commission, the Investor Compensation Fund, the Financial Services and the Treasury Bureau, and the Hong Kong Exchanges and Clearing Limited, the Hong Kong Exchanges and Clearing Limited will arrange for the collection of these fees in Renminbi within its internal framework, without the need to amend any legislation. Hui pointed out that in June 2023, the Hong Kong Exchanges and Clearing Limited launched the "Dual Counter Model" for trading securities in Hong Kong in Renminbi and Hong Kong dollars, allowing investors to choose to trade in either currency. However, according to the Stamp Duty Ordinance, stamp duty calculated in a currency other than Hong Kong dollars must be converted into the equivalent amount in Hong Kong dollars. In other words, investors trading in securities in Renminbi counters still have to pay stamp duty in Hong Kong dollars. In order to facilitate investors in trading and paying stamp duty in Renminbi for transactions in Renminbi counters, the Policy Address in 2025 proposed to calculate and pay stamp duty for dual counter securities transactions in Renminbi. Hui stated that as the Renminbi plays an increasingly important role in various types of transactions in the Hong Kong capital market, the proposed arrangement in the bill is expected to increase the trading volume and liquidity of Renminbi counters, strengthen the Renminbi's function as an international investment currency, and broaden the investment channels for Renminbi in Hong Kong. If the bill is passed by the Legislative Council, the arrangement will come into effect on a specified date announced in the Gazette, to facilitate the system adjustments of the Hong Kong Exchanges and Clearing Limited and the Hong Kong Inland Revenue Department. Hui said, "I urge members to support the bill to promote the development of the Hong Kong capital market and further strengthen Hong Kong's position as a leading hub for offshore Renminbi businesses."