Hong Kong Deputy Commissioner of the Treasury: Allow investors to settle and pay stamp duty in Renminbi for Renminbi transactions.

The Deputy Commissioner of the Hong Kong Treasury gave a speech at the meeting of the Legislative Council's Finance Committee on the progress of implementing legislation proposals on stamp duty for stock RMB counter trading to be paid in RMB and implementing the paperless securities market system. Firstly, to align with the country's long-term policy direction of promoting RMB internationalization and facilitate investors to trade dual counter securities through RMB counters, the government proposes to implement stamp duty for stock RMB counter trading to be paid in RMB. The current Stamp Duty Ordinance stipulates that when calculating stamp duty on any document that does not specify the amount in Hong Kong dollars, the amount must be converted into equivalent Hong Kong dollars. In other words, even if investors trade in RMB, the stamp duty generated must still be paid in Hong Kong dollars. As the connectivity between the Mainland and Hong Kong capital markets continues to deepen, we propose amending relevant legislation to allow investors to settle RMB transactions and pay stamp duty in RMB. This arrangement can save investors exchange costs, enhance transaction efficiency, and strengthen RMB's function as an international investment currency. Furthermore, the measures can expand RMB investment channels in Hong Kong, further consolidating Hong Kong's position as a leading offshore RMB business hub.