Hong Kong bets on RMB trading amid Crypto ETFs demand surge

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 RMB offshore liquidity and strengthening the city’s position as the region’s hub for digital asset and ETF trading.

The proposed Stamp Duty (Amendment) (No. 2) Bill 2026 is distinct from the Residential Property Stamp Duty amendment legislation that was passed by the Legislative Council on May 20.

This earlier legislation, enacted in the government’s 2026-27 Budget announcement, raised stamp duty for high-end residential sales above HK$100 million to 6.5% from 4.25%. This new securities-focused bill is slated to have its first reading at the Legislative Council on June 10.

Hong Kong pushes RMB trading growth

Hong Kong’s dual-counter trading system allows some selected securities listed on HKEX to be traded in both Hong Kong dollars and renminbi. Currently, duty for trading securities on the RMB counter is required to be paid after conversion to Hong Kong dollars. The proposed amendment to stamp duty will no longer need this step; the duty will be paid directly in RMB.

The proposed move by the Hong Kong government is seen as being aimed at developing and growing RMB-counter trading, thereby expanding the international role of RMB as an investment currency. “The proposal is expected to increase the trading volume and liquidity of the RMB counter,” the government stated.

The amendment is built upon the HKD-RMB Dual Counter Model introduced by HKEX in June 2023. On launch, it covered 24 dual-counter securities, and their HKD counter alone was responsible for 40% of the total cash equities daily turnover in Hong Kong.

Eddie Yue, the Chief Executive of HKMA, said that the initiative was an “important step” in enhancing RMB-denominated investment products and Hong Kong’s position as a leading hub for offshore RMB.

The infrastructure for dual-counter trading has been further developed since. In 2026, HKEX implemented additional settlement enhancements to reduce friction between RMB and HKD counters and improve market liquidity.

RMB reform adds new angle to Hong Kong crypto ETFs

Dual-counter securities on HKEX are used in the city’s spot Bitcoin and Ether ETF market, which gained regulatory approval in April 2024, as Hong Kong vies for a regulated digital asset hub status.

The six spot crypto ETFs from Bosera HashKey, ChinaAMC and Harvest began trading on HKEX on April 30, 2024. On the day they were launched, the total trading volume was approximately HK$87.5 million (US$11.2 million), as per The Block.

Bosera HashKey’s Bitcoin ETF had a value of assets under management amounting to US$79.3 million by March 31, 2026, according to HKEX’s fund disclosures.

Although the primary activity involving crypto ETFs is currently based on HKD and USD counters, experts believe this reform will gradually stimulate more demand for RMB-denominated channels, especially for mainland-linked and RMB investors.

While initially its effect may be primarily operational, it could become significantly larger if Hong Kong allows Southbound Stock Connect investors direct access to RMB counter ETF products in the future. The 2026-27 Budget did propose an investigation into this aspect and its expansion into the internationalization of RMB.

This would be relevant for crypto-linked ETFs because while mainland investors cannot directly access crypto, they could potentially access digital assets through regulated Hong Kong listed investment vehicles.

Deng Chao, the CEO of HashKey Capital, said in his opening speech at the launch of Bosera HashKey ETFs that they aimed at institutional and regulated investors by providing regulated access to digital assets through exchange-traded products.

Likewise, ChinaAMC had also presented its spot Bitcoin ETF as a regulated alternative to buying cryptocurrencies directly by emphasizing the institutional custody and the regulated exchange as appealing aspects for traditional investors.

Analysts are uncertain if this change alone would boost the trading volume of crypto ETFs significantly, but it could remove one layer of friction on foreign exchange in RMB capital markets amid authorities’ efforts to encourage RMB-denominated investment activities.

Overall, Hong Kong’s ETF market continues to grow. HKEX reported an average daily turnover of HK$39.1 billion from January to April this year, an increase of 5% compared to the same period last year.

Broader stamp duty changes

This is the second stamp duty amendment from Hong Kong in 2026. The first one, which was debated and passed on May 20, concerned the high-end residential property market.

The measure raised the stamp duty on residential properties over HK$100 million from 4.25% to 6.5%, backdated from February 26.

The government projected this change would impact only 0.3% of residential transactions and generate HK$1 billion in extra annual revenue, according to an official press release.

Bloomberg Tax reported that for qualifying transactions between Feb. 26 and May 28, buyers and sellers were required to pay the outstanding amount by June 29, or risk penalties of up to 10 times the unpaid amount.

This securities-focused bill for RMB-traded securities has also started a similar legislative process ahead of its June 10 reading.