On July 31, 2026, HKEX announced that the RMB dual-counter mode has expanded again, adding many blue-chip stocks and new economy companies to the RMB counter trading list. Data shows that the average daily trading volume of the HK RMB counter exceeded 50 billion Hong Kong dollars for the first time this month, setting a new historical high. This milestone marks a key step forward for the HK market in offshore RMB product innovation, and once again highlights Hong Kong's unique position as the world's largest offshore RMB center.
RMB Dual-Counter: From Pilot to Expansion
HKEX officially launched the "Hong Kong Dollar-RMB Dual-Counter Mode" in June 2023, with the first batch of 24 listed companies providing RMB-denominated trading services. After three years of development, as of July 2026, more than 60 listed companies have opened RMB counters, covering multiple industries such as finance, technology, consumption, and energy. This expansion newly added targets are concentrated in high-dividend blue chips and biotechnology sectors, further enriching the choices for international investors.
Market Logic Behind Rising Trading Volume
The explosive growth in trading volume of the HK RMB counter is not accidental. On the one hand, global central banks and sovereign funds continue to increase their allocation of RMB assets, and the demand for offshore RMB investment tools is increasing day by day; on the other hand, the HK RMB counter provides the convenience of "one market, two currencies", allowing investors to participate in the investment of China's core assets without exchange rate risk. This mechanism is a unique advantage that cannot be replicated in international financial centers such as London and New York.
Industry Interpretation: Upgrade of Hong Kong's Offshore RMB Hub
Many international investment bank analysts point out that the RMB dual-counter is not only a trading mechanism innovation, but also Hong Kong's "trump card" to consolidate its position as an international financial center. With the gradual opening of mainland China's capital account, Hong Kong, as the "test field" and "firewall" of RMB internationalization, its strategic value is irreplaceable. A Deutsche Bank report believes that the HK RMB counter is expected to increase the RMB trading share from the current 8% to 15% in the next two years, substantially promoting the cross-border use of RMB.
Attraction to Global Investors
- Avoid Exchange Rate Fluctuations: The RMB counter allows overseas RMB funds to directly invest in HK stocks, reducing exchange costs, especially suitable for foreign institutions holding RMB assets.
- Enhanced Liquidity: The optimization of the dual-counter market maker mechanism has continuously narrowed the bid-ask spread of the RMB counter, and the liquidity gap with the Hong Kong dollar counter has been significantly reduced.
- Tax Advantages: Hong Kong imposes no tax on capital gains and dividends, making the actual return of investing in HK stocks more attractive compared to some international financial centers.
RMB Internationalization and New Opportunities for HK
Since 2026, the weight of RMB in IMF Special Drawing Rights (SDR) has increased to 14.3%, but the global RMB foreign exchange trading share is still less than 7%. As a bridge connecting the mainland and global markets, Hong Kong is forming a deep and broad offshore RMB ecosystem through a multi-level product system of RMB stocks, bonds, and derivatives. In the future, as more mainland leading enterprises list in Hong Kong and add RMB counters, the HK market will form an offshore RMB ecosystem with both depth and breadth.
Risks and Challenges
Of course, the rapid development of the RMB dual-counter also faces challenges. For example, RMB exchange rate fluctuations may affect the willingness of overseas investors to hold RMB assets; the uncertainty of mainland China's capital control policies also needs attention. But overall, Hong Kong's unique institutional advantages and politically neutral position still make it the "preferred gateway" for global capital to allocate Chinese assets.
Conclusion
The unique advantages of the HK market lie not only in its mature institutional system, free capital flow and diversified investor structure, but also in its innovation ability to serve the real economy in line with national strategies. The expansion of the RMB dual-counter is the latest footnote to this advantage. With the deepening of the interconnection mechanism between Hong Kong and the mainland, HK is expected to play a more important role in the global financial market.
