Karla Barker 
Hong Kong is moving forward with a legislative change that could simplify trading in yuan-denominated securities, a step seen as part of broader efforts to boost offshore RMB liquidity and strengthen its role as a digital asset hub.
The proposed Stamp Duty (Amendment) (No. 2) Bill 2026 focuses on securities traded under the city’s dual-counter system, which allows certain HKEX-listed stocks and ETFs to trade in both Hong Kong dollars and renminbi. Currently, stamp duty on RMB-counter trades must be paid after conversion to HKD. The amendment would eliminate that step, letting investors pay duty directly in RMB.
This bill is separate from the Residential Property Stamp Duty amendment passed on May 20, which raised the rate for high-end sales above HK$100 million to 6.5% from 4.25%. The securities-focused legislation is scheduled for its first reading in the Legislative Council on June 10.
Dual-counter model and crypto ETFs
The amendment builds on the HKD-RMB Dual Counter Model launched by HKEX in June 2023. That system initially covered 24 securities, whose HKD counters alone accounted for 40% of daily cash equity turnover in Hong Kong. Since then, HKEX has added settlement enhancements to reduce friction between the two counters and improve market liquidity.
Dual-counter securities are also used for the city’s spot Bitcoin and Ether ETFs, which received regulatory approval in April 2024. Six such ETFs from Bosera HashKey, ChinaAMC, and Harvest began trading on HKEX on April 30, 2024, with a combined first-day volume of about HK$87.5 million (US$11.2 million). By March 31, 2026, Bosera HashKey’s Bitcoin ETF had US$79.3 million in assets under management, per HKEX disclosures.
Eddie Yue, CEO of the Hong Kong Monetary Authority, called the amendment an “important step” for expanding RMB-denominated investment products. Experts suggest the change may initially have a limited operational impact, but could become more significant if Hong Kong allows Southbound Stock Connect investors direct access to RMB-counter ETF products. The 2026-27 Budget mentioned exploring this possibility as part of RMB internationalization efforts.
Potential implications for mainland investors
While mainland Chinese investors cannot directly access crypto assets, they could potentially gain exposure through regulated Hong Kong-listed investment vehicles like crypto ETFs. Deng Chao, CEO of HashKey Capital, said at the launch of Bosera HashKey ETFs that the products target institutional and regulated investors by offering a controlled pathway to digital assets. ChinaAMC similarly pitched its Bitcoin ETF as a regulated alternative to direct crypto purchases, highlighting institutional custody and the regulated exchange as key selling points.
Analysts remain cautious about whether the stamp duty change alone will significantly boost crypto ETF trading volumes. But it may remove one layer of foreign exchange friction for RMB capital markets, as authorities encourage more yuan-denominated investment activity.
Broader market context
Hong Kong’s ETF market has been growing. HKEX reported an average daily turnover of HK$39.1 billion from January to April this year, up 5% from the same period in 2025. This is Hong Kong’s second stamp duty amendment in 2026; the first, which passed on May 20, raised the rate on high-end residential properties over HK$100 million from 4.25% to 6.5%, backdated to February 26. The government estimated that change would affect just 0.3% of residential transactions and generate HK$1 billion in additional annual revenue.
Bloomberg Tax reported that for qualifying transactions between February 26 and May 28, buyers and sellers must pay outstanding amounts by June 29 or face penalties up to 10 times the unpaid sum.
The securities-focused bill now follows a similar legislative path ahead of its June 10 reading.