Trading of RMB Products

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Can OTP-C support trading of RMB products?

The Orion Trading Platform – Securities Market (OTP-C) is a multi-currency system which is capable of supporting transactions in RMB products (with currency code 'CNY’ in OTP-C) in a manner similar to that applicable to products denominated in HKD and USD.

Will there be a different set of trading rules for RMB products?

The Rules of the Exchange apply equally to the trading of RMB products, same as for products traded on the Stock Exchange in HKD and other currencies.

How is order consideration limit checking performed in OTP-C?

Checking of order consideration limit applies to all trading devices of the same EP firm and is performed in terms of HKD equivalent value.

In what currency will trading related fees and charges be collected by the Stock Exchange from Exchange Participants?

Same as current trading in USD products, trading related fees and charges (such as stamp duty, transaction levy and trading fees) will be collected by the Stock Exchange from Exchange Participants in HKD regardless of the trading denominations of the products.

How to calculate the stamp duty payable for transactions denominated in RMB?

As confirmed by Inland Revenue Department, the foreign currency denominated consideration of a transaction should be converted into HK dollar before applying the stamp duty rate. The stamp duty derived therefrom should then be rounded up to the nearest HK$1.

Example: a transaction of RMB10,000
Consideration =HK$11,710 (RMB10,000 @ exchange rate of 1.171)
Stamp duty @0.1% =HK$11.71
Stamp duty payable =HK$12.00 (rounded up to the nearest HK$1)

If a transaction denominated in RMB is concluded or effected on a trading day (T day) but reported to the Exchange on the following day (T+1 day), which exchange rate (ie exchange rate for T day or T+1 day) should be used for converting such transaction into HK dollar equivalent for calculation of stamp duty, SFC transaction levy and Exchange trading fee before payment to the Exchange?

As confirmed by Inland Revenue Department, if a transaction is effected on the T day, the date of the contract note would be the T day. In this connection, the exchange rate adopted for the conversion for such transaction denominated in RMB effected on T day should be that on the T day (see Q3.6 above). Effectively, the stamp duty of such transaction denominated in RMB will be calculated based on the exchange rate for T day. Exchange rates for calculation of stamp duty for each trading day are available on the HKEx website (click here).

In order to facilitate EPs’ operations, the same exchange rate for T day will also be used for the calculation of both SFC transaction levy and Exchange trading fee for the same RMB transaction.