Hong Kong is pushing forward with a legislative amendment that could simplify stamp duty payments for securities traded in renminbi, a move that might indirectly support the city’s growing crypto ETF market.
The proposed Stamp Duty (Amendment) (No. 2) Bill 2026 would allow dual-counter securities listed on the Hong Kong Stock Exchange to have their stamp duty paid directly in RMB, rather than converting to Hong Kong dollars first. These dual-counter securities can already be traded in both HKD and RMB, but the duty payment process has required an extra conversion step.
A step for RMB liquidity and digital asset hub status
The government sees this as a way to boost offshore RMB liquidity and strengthen Hong Kong’s role as a regional hub for digital asset and ETF trading. Eddie Yue, the Chief Executive of the Hong Kong Monetary Authority, called the initiative an “important step” for RMB-denominated investment products.
The amendment builds on the HKD-RMB Dual Counter Model introduced by HKEX in June 2023. Initially covering 24 dual-counter securities, the HKD counter alone represented 40% of total cash equities daily turnover at launch. Further settlement enhancements were added in 2026 to reduce friction between the two counters.
Crypto ETFs and the potential for mainland investors
Hong Kong’s spot Bitcoin and Ether ETF market, which gained regulatory approval in April 2024, also uses these dual-counter securities. Six spot crypto ETFs from Bosera HashKey, ChinaAMC, and Harvest started trading on HKEX on April 30, 2024, and the total trading volume on the launch day was about HK$87.5 million, according to The Block. By March 31, 2026, Bosera HashKey’s Bitcoin ETF had US$79.3 million in assets under management.
Currently, most crypto ETF activity is based on HKD and USD counters. But experts think the new reform could gradually stimulate demand for RMB-denominated channels, especially from mainland-linked and RMB investors. If Hong Kong allows Southbound Stock Connect investors to directly access RMB counter ETF products in the future, the effect could become much larger. The 2026-27 Budget did propose investigating this expansion for RMB internationalization.
This might be relevant for crypto-linked ETFs because while mainland investors can’t directly access crypto, they could potentially use regulated Hong Kong-listed investment vehicles. Deng Chao, CEO of HashKey Capital, said at the launch that the ETFs target institutional and regulated investors. ChinaAMC also emphasized the appeal of institutional custody and a regulated exchange.
Analysts remain cautious about immediate impact
Some analysts are uncertain if this change alone will significantly boost crypto ETF trading volume. But it could remove one layer of friction on foreign exchange in RMB capital markets, especially as authorities encourage more RMB-denominated investment activities. Overall, Hong Kong’s ETF market is growing. HKEX reported an average daily turnover of HK$39.1 billion from January to April this year, up 5% from the same period last year.
This is the second stamp duty amendment in Hong Kong in 2026. The first, passed on May 20, raised stamp duty on high-end residential properties over HK$100 million from 4.25% to 6.5%, backdated from February 26. The government expects that change to affect only 0.3% of residential transactions and generate HK$1 billion in extra annual revenue. Bloomberg Tax noted that buyers and sellers of qualifying transactions between Feb. 26 and May 28 must pay the outstanding amount by June 29 or face penalties up to 10 times the unpaid amount.
The securities-focused bill for RMB trading is now in the legislative process ahead of its first reading at the Legislative Council on June 10.
