An amendment to Hong Kong’s stamp duty bill could mean that dual-counter securities traded in yuan are subject to stamp duty directly in renminbi. This is also another effort aimed at boosting external RMB liquidity and strengthening the city’s position as the region’s hub for digital assets and ETF trading.
The Stamp Duty (Amendment) (No. 2) Bill 2026 differs from the Residential Stamp Duty Amendment legislation passed by the Legislative Council on 20 May.
This earlier legislation, enacted in the government’s 2026-27 budget announcement, raised stamp duty on high-end residential sales above HK$100 million to 6.5% from 4.25%. The new securities-focused bill is scheduled to be read for the first time in the Legislative Council on June 10.
Hong Kong drives RMB trade growth
Hong Kong’s dual trading system allows certain selected securities listed on the Hong Kong Stock Exchange to be traded in both the Hong Kong dollar and the renminbi. Currently, securities trading fees need to be paid in RMB after converting to Hong Kong dollars. The proposed stamp duty amendment would no longer require this step; Fees will be paid directly in RMB.
The move proposed by the Hong Kong government is seen as aiming to develop and grow trading in the renminbi, thus expanding the international role of the renminbi as an investment currency. “The proposal is expected to increase trading volume and liquidity in the renminbi,” the government stated.
The amendment is based on the HKD-RMB dual counter model introduced by the Hong Kong Stock Exchange in June 2023. Upon its launch, it covered 24 dual counter securities, with the HKD counter alone accounting for 40% of the total daily trading volume of cash stocks in Hong Kong.
Eddie Yeo, chief executive of the Hong Kong Capital Markets Authority, said the initiative was an “important step” in strengthening renminbi-denominated investment products and Hong Kong’s position as a leading offshore renminbi hub.
The infrastructure for dual trading has been developed since then. In 2026, the Hong Kong Stock Exchange implemented additional settlement improvements to reduce friction between RMB and Hong Kong dollar counters and improve market liquidity.
RMB reform adds a new angle to cryptocurrency ETFs in Hong Kong
Double counter securities are used on the Hong Kong Stock Exchange in the Bitcoin market and Ether ETF The market, which received regulatory approval in April 2024, as Hong Kong competes for a regulatory status for digital assets.
The six spot cryptocurrency ETFs from Bosera HashKey, ChinaAMC, and Harvest began trading on the Hong Kong Stock Exchange on April 30, 2024. On the day of their launch, total trading volume reached approximately HK$87.5 million (US$11.2 million), according to The Block.
Bosera HashKey’s Bitcoin ETF will have $79.3 million in assets under management by March 31, 2026, according to the fund’s Hong Kong exchange filings.
Although the basic activity includes Crypto ETFsThe system currently relies on HKD and USD counters, and experts believe that this reform will gradually stimulate more demand for RMB-denominated channels, especially for mainland-linked investors and RMB investors.
While its impact may be operational at first, it could become much larger if Hong Kong allows Southbound Stock Connect investors direct access to RMB-counterfeit ETF products in the future. The 2026-2027 Budget proposed to investigate and expand this aspect of RMB internationalization.
This would be relevant for crypto-related ETFs, because while mainland investors cannot directly access cryptocurrencies, they will likely be able to access digital assets through regulated Hong Kong-listed investment vehicles.
Ding Zhao, CEO of HashKey Capital, said in his opening remarks at the launch of the Bosera HashKey ETFs that they target institutional and regulated investors by providing regulated access to digital assets through exchange-traded products.
Likewise, ChinaAMC has also introduced its Spot Bitcoin ETF as a regulated alternative to buying cryptocurrencies directly by emphasizing institutional custody and a regulated exchange as attractive aspects for traditional investors.
Analysts are unsure whether this change alone will significantly boost the trading volume of cryptocurrency ETFs, but it may remove one layer of friction on forex in RMB capital markets amid authorities’ efforts to encourage RMB-denominated investment activities.
Overall, the ETF market in Hong Kong continues to grow. The Hong Kong Stock Exchange recorded an average daily trading volume of HK$39.1 billion from January to April this year, an increase of 5% compared to the same period last year.
Wider changes to stamp duty
This is the second stamp duty amendment From Hong Kong in 2026. The first, discussed and passed on May 20, concerns the high-end residential real estate market.
The measure raised stamp duty on residential properties worth more than HK$100 million from 4.25% to 6.5%, retroactively effective from February 26.
The government expected this change to affect only 0.3% of residential transactions and generate an additional annual revenue of HK$1 billion, according to an official press release.
For qualifying transactions between February 26 and May 28, buyers and sellers must pay the amount due by June 29, or risk penalties of up to 10 times the unpaid amount, Bloomberg Tax reported.
The draft law, which focuses on securities for renminbi-traded securities, has also begun a similar legislative process ahead of its reading on June 10.
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