Dual Counter Model

FAQ on Dual Counter Model
What is Dual Counter Securities?

Dual Counter Securities refer to securities with HKD and RMB counters (“HKD-RMB Dual Counters”) .  They are of the same class and transferable.

For the stock code, RMB counter will be a 5- digit number starting with an “8” and for its short name, it will end with –R.

For latest list of Dual Counter Securities and other relevant details, please refer to HKEX web corner:https://www.hkex.com.hk/Services/Trading/Securities/Overview/Trading-Mechanism/HKD-RMB-Dual-Counter-Model?sc_lang=en

What currency will be used for payment of trading fee for RMB counter?

We will collect corresponding RMB amounts of trading-related fees,  levies and stamp duty from clients.

How does inter-counter trading work?

-Inter-counter trading and settlement
Inter-counter trading means buying in one counter and selling in another counter as two independent transactions, even though both transactions involve the same security.

Our trading systems and operations are inter-counter trading ready.  We will facilitate the inter-counter transfer for settlement on behalf of client automatically. Clients can also initiate Inter-counter transfers manually, handling fee will be charged for such transfers.  Please refer to the Fee table under Custodial Services & Nominees Fees Table for information.

Would the buying of securities in one counter followed by the selling in the other counter within the same trading day be permissible?

Yes, this would be permissible under the existing Rules of the Exchange.

How are dividends, bonus or scrip shares for RMB counter securities or HKD counter securities handled?

Clients will receive dividends or scrip shares in the RMB counter or HKD counter based on the shareholding under the respective RMB or HKD counters as of the relevant shareholding record date in the account.

Can physical certificates of one counter be deposited into CCASS to be booked under its opposite counter?

Under the Dual Counter Model, as the RMB counter is offered for secondary market trading and settlement purposes only, no physical certificate deposit or withdrawal service will be provided for the RMB counter and physical deposit and withdrawal of securities will not be allowed under the CCASS Rules. 

In order to book the holdings into the RMB counter, client will need to deposit the share certificates and instruct the company to transfer the holdings from the HKD counter to the RMB counter.  Likewise, for withdrawal in the RMB counter, client will need to instruct the company to transfer the holdings from the RMB counter to the HKD counter, and then submit a withdrawal instruction.   Clients should refer to the issuer’s prospectus or listing documents for more information