Frequently Asked Questions 
28/11/2013 
 
The FAQ will be updated to include more detail and is subject to change.
RMB Equities
Part 1: General Questions For Issuers 
Part 2: RMB IPO Models 
"Single Counter" Model
"Dual Tranche, Dual Counter" Model
Part 3: RMB Follow-on Offerings Model 
RMB ETFs (updated on 5 October 2012)
Part 4: RMB ETFs
RMB and HKD Dual-Counters
Part 5: Dual-Counters Related Questions
(Applicable to equities and ETFs unless specified otherwise)
 
Transferability
Corporate Actions
Trading Arrangement
Clearing and Settlement Arrangement
Transfer Arrangement (CCASS and Share Registrar)
Depository Arrangement
Dual Counter model for HKD-denominated ETFs
Fees and Other Transaction Costs
Part 6: Fees and Other Transaction Costs  

  

RMB Equities

Part 1.    General Questions For Issuers

 

1.1

Will the issuer automatically be able to remit the RMB proceeds raised from a RMB IPO or a RMB follow-on offering to the Mainland?

 

Regardless of the currency involved, if an issuer wishes to remit RMB proceeds to the Mainland, it will have to obtain all necessary approvals from the relevant Mainland authorities. The procedure should be similar to the existing arrangement for remitting funds raised in Hong Kong back to the Mainland.

 

1.2

If an issuer decides to raise funds through a RMB IPO or a RMB follow-on offering, will it result in additional delays in the review process by the Listing Division?

 

There should not be any delays in the listing review process as all IPOs and follow-on offering will be subject to the same process regardless of the currency of the funds that they are raising. However, since we are in the early stage of the development of RMB products on the HKEx platform, there may be additional disclosure requirements and mechanics in relation to a RMB IPO or a RMB follow-on offering. We will dedicate necessary resources to work closely with all prospective and existing issuers seeking a RMB IPO or a RMB follow-on offering to prevent unnecessary delays in the process. 

 

1.3

Will issuers who raise funds through RMB IPOs or RMB follow-on offerings be subject to additional HKEx compliance rules?

 

At the moment, we do not see the need for any additional compliance rules for issuers of RMB IPOs other than what are currently in the Listing Rules. We will review such need from time to time and as the situation may require as the RMB equity market in Hong Kong develops.

 

1.4

Does an issuer need approval to remit the RMB proceeds to the Mainland at the time of A1 filing, Listing Committee Hearing or listing?

 

There is no HKEx Listing Rule requirement to obtain prior approval, but any remittance of funds into the Mainland will require the necessary approvals (see relevant question above).

 

1.5

Will there be a minimum market capitalization requirement for a RMB IPO or a RMB follow-on offering?

 

For RMB IPO, given transferability, the HKD and RMB tranches need to meet the minimum market capitalisation requirement under the Listing Rules on an aggregate basis at the time of listing.

For RMB follow-on offering, given transferability, there is no specific requirement, but we expect a meaningful offer size and an adequate spread of shareholders for the RMB counter to support secondary market liquidity.

 

Part 2.    RMB IPO Models

 

"Single Counter" Model

(2.1, 2.2, 2.3, 2.4 are posted on 13 April 2012)

 

 

2.1

What is a Single Tranche, Single Counter RMB IPO?

   

A Single Tranche, Single Counter RMB IPO is a model whereby investors subscribe to the IPO shares with RMB only. Upon listing, all shares will be traded in RMB. The Hui Xian REIT IPO is an example using the Single Tranche, Single Counter model.

   

2.2 What is a Dual Tranche, Single Counter RMB IPO?
  
Under a Dual Tranche, Single Counter RMB IPO, an issuer provides investors with currency options to subscribe its shares in either (a) all in RMB; (b) all in HKD; or (c) partly in RMB and partly in HKD. Generally, the issuer will request and the Exchange will grant rule exemption on multiple applications as long as only one application is made to the RMB tranche and one in the HKD tranche per subscriber. Upon listing, all shares will be traded in RMB only.
 
If an issuer is to provide a HKD subscription option to investors, the prospectus should clearly disclose the detailed subscription mechanism, including in particular the HKD/RMB conversion mechanism and associated costs and risks to the investors.
 
2.3 How can an investor subscribe IPO shares partly in RMB and partly in HKD under a Dual Tranche, Single Counter RMB IPO?
 

Similar to the existing HKD IPO, investors can subscribe IPO shares in HKD and/or RMB through one of the following channels: (a) paper application forms; (b) CCASS EIPO directly or via a broker or custodian; or (c) white form EIPO.  
  
If applications are made through CCASS and are partly in HKD and partly in RMB, two separate electronic application instructions will need to be submitted, one for RMB subscription and the other one for HKD subscription. 

 
2.4 How does CCASS EIPO work under a Dual Tranche, Single Counter RMB IPO?
 

CCASS will set up two separate EIPO announcements, one for RMB subscriptions under the issuer’s stock code and the other one for HKD subscriptions under a temporary dummy stock code assigned by CCASS purely for CCASS EIPO purposes.  
 
The two EIPO announcements will then be processed separately.  In other words, two separate upload files, allotment reports and holdings for allotted shares will be required/generated/credited under each EIPO announcement and separate electronic payment instructions will be generated under each EIPO announcement for payment and refund of subscription monies. Before listing, the holding under the temporary dummy stock code will be converted to the issuer’s stock code so that upon listing all the holdings for allotted shares under the two EIPO announcements will be reflected under the issuer’s stock code. 

 

"Dual Tranche, Dual Counter" Model

 

2.5

What is a Dual Tranche, Dual Counter RMB IPO?

   

A Dual Tranche, Dual Counter RMB IPO is the simultaneous offering and initial listing of a tranche of RMB-traded shares and a tranche of HKD-traded shares by the same issuer. All shares from the two tranches are of the same class and all shareholders are treated equally. Upon listing, shares of the two tranches will be traded under two separate counters on the HKEx in their respective currencies (ie one in RMB and one in HKD). The trades of the respective counters will be cleared and settled separately under CCASS, HKExs Central Clearing and Settlement System for securities. The Dual Tranche, Dual Counter model may entail a mechanism whereby a shareholder may transfer his/her shares from one tranche to the other through the share registrar. The concept is similar to dually-listed companies whose shares may be traded in different currencies in different markets, except that the Dual Tranche, Dual Counter model will work in the same market. The above describes how a possible Dual Tranche, Dual Counter model would work. HKEx retains flexibility for other possible IPO models.

 

2.6

Under the Dual Tranche, Dual Counter model, what is the allocation mechanism between the RMB and HKD tranches before pricing?

 

We expect the two tranches will work in largely the same way as two parallel IPOs except that the upfront allocation of shares between the two tranches will have to be clearly disclosed in the prospectus; and the offer price of the two tranches should be the same (subject only to HKD/RMB conversion), etc. The prospectus will also need to fully disclose the claw-back and re-allocation mechanisms and that they function independently within the tranche. Having satisfied the intra-tranche claw-back/re-allocation requirements, the issuer may re-allocate shares between the two tranches in the light of market demand.

 

2.7

Should RMB and HKD tranches be priced at the same level?

   

See answer to the question above. The offer price of the two tranches should be the same after foreign exchange conversion. The FX rate or the mechanism for the determination of the FX rate to be used for the purpose of calculating the final offer price should be clearly disclosed in the prospectus.

 

2.8

How will underwriters' stabilisation work after a Dual Tranche, Dual Counter IPO?

 

Given transferability, the existing "Greenshoe" mechanism (ie the over-allotment option) will apply to both two tranches in aggregate 15% on the basis of pre-determined offer size.

 

2.9

Will a RMB tranche of shares require an additional intermediary like an HDR does?

   

In general, we do not see the need for any additional intermediaries for a RMB IPO other than what is required under the Listing Rules for the issuance of shares.  Any new requirements will be considered in more detail on the circumstances and merits of individual cases.

   

Part 3.    RMB Follow-on Offerings Model

    

3.1

What are the methods of an RMB follow-on offering?

 

A listed issuer can choose to raise funds in RMB via placement, rights issue/open offer, public offer, or a combination of the above, which is similar to existing fund raising methods allowed under the Listing Rules. The RMB follow-on offering will lead to a new counter of RMB-traded shares of the same issuer on the Stock Exchange alongside the HKD counter. While the new shares subscribed in RMB will be traded in the RMB counter, the existing HKD-traded shares will continue to be traded in the existing HKD counter.

   

3.2

Will the RMB follow-on offering process be more complex than the existing mechanism?

   

The process for a RMB follow-on offering should be similar to the existing follow-on offering process in other currency. Existing disclosure requirements per Listing Rules and Company Ordinance shall continue to apply. There should be additional disclosure on the establishment of dual trading counters and related arrangements for corporate actions such as dividend payments and currency options.

   

3.3

Can a listed issuer launch a new RMB counter without making a RMB follow-on offering?

   

We retain flexibility for other possible means to issue RMB-traded shares, but there should be a reasonable supply of RMB-traded shares to support the secondary market liquidity.

 

3.4

Can a listed issuer raise funds in RMB without launching a new RMB counter?

 

Yes, the existing Listing Rules permits secondary fund raising in currency other than HKD, including RMB.  Shares resulting from such secondary fund raising may be traded in the HKD counter, provided there is sufficient disclosure to the market.

  
RMB ETFs (updated on 5 October 2012)
Part 4.   RMB ETFs
 
RMB and HKD Dual Counters

Part 5.   Dual-Counters Related Questions

(Applicable to equities and ETFs unless specified otherwise)

   

Transferability

 

5.1

Will HKD-traded securities and RMB-traded securities be transferable?

 

Transferability between the HKD-traded and RMB-traded securities (from one counter to another counter without change in legal ownership) will help to ensure the efficiency of arbitrage and thereby maintain the prices of the two counters in the secondary market within a reasonable gap. Therefore, we favour allowing transferability between the two counters.

 

5.2

Will dual-counter with transferability breach the RMB20K conversion limit for banks with individual customers?

 

No.  Under the dual-counter model with transferability, where an investor bought HKD-traded securities and subsequently converted them into RMB-traded securities and sold them on the RMB counter, the transactions do not actually involve a net increase of RMB funds in the offshore market.  It only entails the transfer of RMB funds in the offshore market from one investor to another. Furthermore, the daily conversion limit only applies to banks' RMB currency exchange business with personal customers.

 

Corporate Actions

 

5.3

Will holders of the RMB-traded securities and the HKD-traded securities be treated differently?

 

Where the securities of the two counters are of the same class of shares/units, holders of securities shall be entitled to identical rights.

 

5.4

Will the public float be calculated on a combined basis?

 

Yes, given transferability, the public float will be determined on a combined basis.

 

5.5

How will the market cap of the issuer be calculated?

 

At the initial launch of the Dual Tranche, Dual Counter model or Dual Counter (“DC”) model, HKEx will calculate the market capitalization of a listed company or ETF which has both RMB-traded securities and HKD-traded securities by multiplying the total number of issued shares/units (including both counters) with the price of the HKD counter.  HKEx will continuously review this calculation method, taking into account the development of market practice for the DTDC/ DC model, relative liquidity of the dual counters and market feedback.

 

5.6

Will dividends be paid in HKD or RMB?

 

Any dividend policy (and for that matter other corporate actions) will have to be consistent with the fact that the securities of the two counters are the same class of securities.  Subject to the above and insofar as dividend payment is concerned, the issuer may offer an option to all the holders of the securities to elect to take a dividend in the currency in which the dividend is declared or in an alternative currency or currencies, and set a different default currency for the respective counters in the absence of an election by the holders of the securities. In the cases in which the issuer offers to pay a dividend in RMB (as an option), it will have to consider its access to RMB for dividend payment and its obligation in that respect in relation to the availability of RMB. There should be adequate disclosure in relation to dividend payment and currency options (if any) in the prospectus.

  

5.7

Can a listed issuer remove one of the counters?

 

It will be the issuer's option to decide. We may introduce criteria for the de-counter option.

 
5.8

Will the ownership disclosure requirement apply on a combined basis? (applicable to equities)

  

Given transferability, the ownership continuity and control requirement will be based on the combined tranches. We will review the requirement based on the circumstances and merits of individual cases.

   
5.9

If a listed issuer issues new shares under a general mandate after the launch of a RMB counter, how will the mandate limit and benchmark price be determined? (applicable to equities)

   

The Listing Rules allow an issuer to seek a general mandate of 20 per cent of its total issued share capital. Where there is transferability, the limit would be calculated on a combined basis. It would be the issuer's option to decide the currency for the new issue.

   

5.10

Will bonus or scrip shares be issued in the form of RMB-traded shares or HKD-traded shares? (applicable to equities)

   

It will be the issuer's option to decide. Similar to dividend payment, the issuer may offer an option to all shareholders to elect to receive RMB-traded shares or HKD-traded shares, and set a different default currency for the respective tranches in the absence of an election by the shareholders.

   

5.11

Will the size limits on options granted under share option schemes apply to each tranche or combined tranches? (applicable to equities)

   

Where there is transferability, the size limits will be determined on a combined basis.

   

5.12

Can a listed issuer issue RMB-traded shares or HKD-traded shares as the consideration for an acquisition? (applicable to equities)

   

It will be the issuer's option to decide.

   

5.13

Can a listed issuer repurchase RMB-traded shares or HKD-traded shares or both under a repurchase mandate? (applicable to equities)

   

It will be the issuer's option to decide. Where there is transferability, the 10 per cent limit on the repurchase mandate will be determined on a combined basis.

   

Trading Arrangement

 

5.14

How can investors distinguish between the two counters of securities traded in HKD and RMB? Will there be any identification in their stock codes and stock short names? (updated on 11 October 2012)

 

An investor can distinguish between the two trading counters of a Dual Counter ETF by their stock codes and their stock short names.

Separate and unique stock codes will be assigned to the HKD and RMB counters respectively. The last four digits of the stock codes for the two counters will be the same, while the stock code for RMB counter will be a 5-digit number starting with an “8”, in line with the existing allocation arrangement.

- HKD counter - XXXX
- RMB counter - 8XXXX

The stock short names for the two counters will also be different.  For the RMB counter, the stock short name will end with -R to indicate that the ETF is traded in RMB.  There will be no specific marking in the stock short name of the HKD counter.

The following is an illustrative example of the stock short names:
 
- HKD counter – “XYZ ETF”
- RMB counter – “XYZ ETF-R”

 

5.15

Will the two counters have a single International Securities Identification Number (ISIN) or two separate ISINs?

 

The ISO 6166 standard - ISIN (International Securities Identification Number) -uniquely identifies a security. It is a 12-character alpha-numerical code that does not contain information characterizing financial instruments but serves for uniform identification of a security at trading and settlement.

The list of ISINs is published on the HKEx website (http://www.hkex.com.hk/eng/market/sec_tradinfo/isincode/isincode.htm).

ISINs are issued by the identified, responsible National Numbering Agency based upon a set of guidelines that have been established amongst all National Numbering Agencies.  The Association of National Numbering Agencies (ANNA) has updated its ISIN Guidelines document to reflect this principle.

According to the assessment and agreement made with ANNA and similar to the local code arrangement, two separate and unique ISINs shall be assigned to the RMB counter and HKD counter respectively, to allow for clear identification between the two counters in the post-trade settlement and position management.

 

5.16

For RMB follow-on offerings, if the HKD counter is already a Designated Security eligible for short selling, will the RMB counter become a Designated Security too?

 

The list of Designated Securities eligible for short selling is published on the HKEx  website (http://www.hkex.com.hk/eng/market/sec_tradinfo/CMTradInfo.htm).
 
In principle, if the HKD counter is already a Designated Security eligible for short selling, HKEx will designate the RMB counter as a Designated Security upon its listing after consulting the SFC.

 

5.17

How will the individual turnover of the two stock counters be calculated and displayed in the Automatic Order Matching and Execution System (AMS)? How about the overall market turnover?

 

The turnover of individual counters will be calculated and displayed in their trading currency in AMS. 
 
For calculation and display of overall market turnover, turnover of trades conducted in different trading currencies will be converted into the HKD equivalent, aggregated and displayed in AMS.

 

5.18

Currently AMS performs different checks before an order can be accepted to the central order book (e.g. the order price cannot deviate for more than 9 times from the current nominal price).  How will such checking be performed for the RMB counter?

 

AMS will apply checking at the order level, irrespective of the stock counter.

 

5.19

Would the buying/holding of one counter followed by the selling in the other counter  be regarded as a long sale or a short sale?

 

As the securities in the two counters are of the same class and transferable, the sale  would normally be regarded as a long sale.

 

5.20

Would the buying of securities in one counter followed by the selling of the counter within the same trading day be permissible?

 

Yes, this would be permissible under the existing rules.  However, in order to meet the settlement obligation, brokers should alert their clients the time and fees required to transfer securities from one counter to the other.  EPs should also require and facilitate their clients to do the transfer for timely settlement of transactions on T+2 day.

    

5.21

For Designated Securities, would borrowing of securities in one counter followed by selling in the other counter be regarded as a covered short sale?

 

As the securities in the two counters are of the same class and transferable, the sale  would normally be regarded as a covered short sale and thus subject to the relevant  short selling regulations as stipulated in the Eleventh Schedule of the Rules of the  Exchange and the Securities and Futures Ordinance.

 

5.22

Do brokers need to enhance their systems or processes to support the dual counter trading model?

 

Single-counter trading

There are no additional requirements to brokers for trading within the HKD counter.  For trading within the RMB counter, brokers must ensure their own readiness for trading and settlement of RMB securities. 
 
Inter-counter trading
 
Brokers should review and ensure that their front and back office systems as well as operations are ready to support such client trading activities. 
 
Broker may consider if there is a need to automate their systems such that inter-counter selling as well as transfer of securities between the two counters can be done automatically. 
 
In any case, if brokers' systems cannot handle automatic inter-counter trading and transfer, brokers should have a set of guidelines advising their clients how inter-counter trading could be processed manually and clearly communicate to their clients how these trading activities could be supported and if any additional charges are imposed.

While from a regulatory standpoint, an investor may buy from one counter and sell the same on the other counter in the same day, he/she should bear in mind that: 

o   Such inter-counter day trades might lead to settlement failure of the sale trades at the CCASS on T+2 if the stocks of the buy trades are only delivered by CCASS at the last settlement run on T+2, leaving not enough time to transfer the stocks to the other counter to settle the sales trades on the same day.  Although under the circumstances and provided that the concernedCCASS Participants ("CP") could provide necessary documentary evidence to HKSCC, HKSCC may grant T+3 buy-in exemption, the investors may still be subject to other handling fees imposed by his/her brokers, and the consideration of the sale trades may not be available to the investor from his/her broker until T+3 or even later; 

o   Some EPs and CPs may not provide inter-counter day trade services initially due to various reasons including operation, system limitations, associated settlement risks (as noted above) and other business consideration.  

Therefore, an investor who wishes to conduct inter-counter day trades should consult his/her broker and fully understand the services that his/her broker may provide in this regard and the associated risks and fees. 

 

Clearing and Settlement Arrangements

 

5.23

How does the clearing and settlement of dual-counter trading work? Are there any differences to the existing settlement mechanism?

 

Exchange trades executed under the respective counters will be cleared and settled in CCASS as two individual stocks.  There is no inter-counter netting for dual-counter trading. After netting under the CNS System, one CNS stock position will be netted for each DTDC counter, i.e. RMB-counter and/or HKD-counter.
 
CPs should settle their CNS stock position on the basis of T+2 per stock, i.e. per counter basis, which is in line with the existing settlement mechanism.

 

5.24

How are "inter-counter" day trades settled?

 

As always, Participants should ensure they have sufficient securities available to fulfill their CNS short positions on T+2.  For "inter-counter" day trades, if a Participant relies on securities received from a long position in one counter to settle its short position in another counter, CCASS Participants should submit a "Multi-counter Transfer Instruction" to HKSCC through CCASS Terminals before 3:45 p.m.  In case the securities received from the long position are subject to the on-hold mechanism, Participants should effect cash prepayment to release the CNS allocated securities before effecting the inter-counter transfer. All activities related to "Multi-counter Transfer Instructions" are recorded in a CCASS report which is available to Participants for reconciliation purpose. 

 

5.25

Will buy-in exemptions be granted for the settlement of "inter-counter" day trade?

 

Buy-in exemption will be considered for applications that satisfied the defined conditions.  Where the Participant has an unsettled short position in one counter and has sufficient shares/units and/or long position in the other counter, following transfer of which are sufficient to settle the relevant short position on T+2, Participant can submit an “Application Form for Exemption of Buy-in” to HKSCC not later than 8:00 p.m. on T+2.  Participant is required to provide HKSCC a copy of the relevant CCASS report evidencing the shares/units and/or long position are available to cover the relevant short position on T+2; evidence that the Participant has submitted a Multi-counter Transfer Instruction which is either cancelled by the system after the batch transfer run and/or a system message is returned as there are insufficient stock balance upon input of Multi-counter Transfer Instruction after the batch transfer run; and effected cash prepayment, if applicable.

 

5.26

How will marks be calculated for dual-counter securities?

 

Marks calculation for dual-counter securities will be on a per counter basis.  Marks will be collected in HKD, which is in line with the current arrangements.

 

Transfer Arrangement (CCASS and Share Registrar)

 

5.27

How to effect a Multi-counter Transfer Instructions in CCASS? (updated on 13 April 2012)

 

CPs should submit their Multi-counter Transfer Instruction electronically via CCASS on-line. 

 

5.28

After a Multi-counter Transfer Instruction is effected in CCASS, will the transferred securities be subject to any on-hold / earmark mechanism?

 

No, inter-counter transfers are not subject to any on-hold / earmark mechanism.  Securities are freely transferable after they are "transferred" from one counter into its opposite counter.

 

5.29

For an investor who holds physical certificates, how are securities transferred from one counter to the other at the Share Registrar and how long does that take?

 

The investor should take the physical certificates (registered in investor's name) to the relevant share registrar to request shares be transferred from the original counter to the other counter. The whole transfer process may take place overnight or up to 2 weeks depending on the required service level of the investor.

 

Depository Arrangements

 

5.30

Can physical certificates of one counter be deposited into CCASS as shareholdings of its opposite counter?

 

No, CPs can only deposit physical certificates of one counter into CCASS as holdings of the same counter.  In case CPs wish to utilise such shareholdings under the opposite counter, after depositing the share certificates into CCASS, CPs should effect a Multi-counter Transfer Instruction to transfer the shareholdings from one counter into the opposite counter.

              

Dual Counter model for HKD-denominated ETFs
         
5.31 What is the currency used for the creation and redemption of new units of HKD-denominated ETFs? Is the Dual Counter model adopted for primary market or secondary trading? Can newly issued units from creation in the primary market be designated in the RMB counter immediately upon issuance?   


Creation and redemption of new units in the primary market for HKD-denominated ETFs adopting the Dual Counter model
are in HKD only. As such, an ETF only adopts the Dual Counter model for secondary trading purposes.  


Subject to the agreed operation arrangement between the ETF manager and its Participating Dealer, newly issued units from creation in the primary market can be designated in the RMB counter and/or HKD counter immediately upon issuance.  Investors should consult the Participating Dealers for more details including any fees and other conditions involved. 
   
5.32 Payment of dividends in HKD/RMB and guidance to Managers 

Dividends of a Dual Counter HKD-denominated ETF are declared in HKD and may be paid in HKD only or, where so offered by the ETF manager, in RMB as well as HKD depending on an investor’s election.   Where an investor does not have an RMB account, the investor may have to bear the fees and charges associated with the conversion of any dividend in RMB into HKD or any other currency. 

Any dividend policy (and for that matter other corporate actions) will have to be consistent with the fact that units traded on the two counters are of the same class and unitholders of both counters must be treated equally. 

If an
ETF manager chooses to set a different default currency for dividend payment (i.e. pay dividend in RMB for RMB counter and HKD for HKD counter in the absence of an election by the unitholders), the ETF manager must offer an election to investors in both counters to choose the currency in which they would like to receive the dividend.  This means that both investors in RMB counter and HKD counter can elect to receive dividend in RMB or HKD.  There should be adequate disclosure in relation to dividend payment and currency options (if any) in the prospectus.  Investors should refer to the prospectus in relation to details of dividend payment and if in doubt, consult the ETF manager or your brokers. 
    
5.33 How will the last closing net asset value (NAV) per unit and near real time estimated NAV (iNAV) per unit of a HKD-denominated ETF with a RMB-counter be calculated? 

The official NAV per unit of
a HKD-denominated ETF will be calculated and published in HKD.  The NAV per unit and iNAV per unit for a HKD-denominated ETF with a RMB counter will also be available in RMB on the website of the relevant ETF for reference purpose.  The NAV per unit and iNAV per unit in RMB are calculated by converting the NAV per unit and iNAV per unit in HKD into RMB using the foreign exchange rate as specified by the ETF manager or its agent and disclosed on the ETF’s website.  
   
5.34 Must there be a Securities Market Maker (SMM) for each ETF counter?   

Same for all ETFs, each ETF counter must have at least one SMM.  
   
5.35 Will the Trading Support Facility support the trading of the RMB counter of ETFs with dual counters? 

Yes, the TSF will support the trading of the RMB counter if the particular ETF is eligible for the TSF.  A list of securities to be supported by the TSF is published on the HKEx website.  Non-equity related ETFs will not be supported at this stage however.  For details about the TSF, please refer to the RMB Equity Trading Support Facility page on the HKEx website.   
   
5.36 Are there other relevant reference materials on the operation of the Dual Counter model to ETFs and additional guidance for ETF Market Participants? 

Apart from the above, please also refer to the relevant information set out in
Part 4 of this FAQ relating to “Dual Counter Model for RQFII A-share ETFs”, which would apply similarly to a Dual Counter HKD-denominated ETF.  
   
Fees and Other Transaction Costs

Part 6.    Fees and Other Transaction Costs

 

(Applicable to equities and ETFs unless specified otherwise)

 

6.1

What currency/currencies will investors/brokers use to pay for RMB IPOs and trades?

 

For RMB IPOs, investors and brokers will be able to pay the levies and other costs (such as commission) in RMB or HKD.  For secondary market trading in RMB-traded securities, brokers will have to pay the SFC levy as well as other exchange and clearing fees in HKD.  For stamp duty, HKEx's understanding is that the current legislation requires the stamp duty for securities transactions, including transactions in RMB-traded securities, to be paid in HKD.

 

6.2

For dual-counter traded securities, what is the cost of effecting a Multi-counter Transfer Instruction in CCASS?

 

HKSCC will charge HKD5 for each effected Multi-counter Transfer Instruction.

  

6.3

For dual-counter traded shares/units*, what is the cost of the share/unit* transfer at the Share Registrar?

 

It will depend on the service level required.  It may cost up to HKD$100 (subject to the pricing scheme of share registrars) per certificate for 2-day express service.

         

*Applicable to units of an ETF issued in physical form only.
           

6.4

For dual-counter traded securities, what is the cost of CCASS nominee service?

 

CCASS fees for nominee services of multi-counter stocks are the same as that for other CCASS stocks, including the maximum cash dividend collection fee of  HKD10,000 per stock.