HKEX: Stamp duty arising from takeover offers under Section 8 of the Hong Kong Settlement Operations Procedures Rules continues to be calculated and paid in Hong Kong dollars.

On 14 September, the Hong Kong Stock Exchange published a notice regarding arrangements for the payment of stamp duty, the Securities and Futures Commission transaction levy, the Accounting and Financial Reporting Council transaction levy, the Investor Compensation Levy (currently suspended), and the Hong Kong Stock Exchange trading fee (collectively, "trading-related fees") in Renminbi. For the avoidance of doubt, stamp duty arising from takeover offers under Section 8 of the Hong Kong Settlement Operations Procedures Rules will not be affected by the above Renminbi payment arrangements and will continue to be calculated and paid in Hong Kong dollars under the existing arrangements. Regarding the scope of applicable securities, under the Stamp Duty (Amendment) (No. 2) Ordinance 2026 (the "Amendment Ordinance"), stamp duty arising from dual-counter securities transactions conducted on Renminbi counters will be calculated and paid in Renminbi. In conjunction with the Amendment Ordinance and subject to obtaining regulatory approval: (a) the Hong Kong Stock Exchange will make arrangements for trading-related fees arising from transactions conducted on the Renminbi counters of dual-counter securities to be paid in Renminbi; and (b) to maintain a consistent payment framework, trading-related fees arising from transactions conducted on the Renminbi counters of multi-counter exchange-traded funds and real estate investment trusts that are currently exempt from stamp duty will also be paid in Renminbi. For the avoidance of doubt, stamp duty and/or trading-related fees arising from transactions conducted on non-Renminbi counters, as well as transactions in securities with only a single Renminbi counter, will continue to be calculated and paid in Hong Kong dollars. Notwithstanding the above arrangements, stamp duty arising from takeover offers for dual-counter securities under Section 8 of the Hong Kong Securities Clearing Company Limited Operations Procedures Rules will continue to be calculated and paid in Hong Kong dollars under the existing arrangements. The notice states that this measure is planned to be launched in mid-2027, subject to the Government's announcement of the commencement date of the Amendment Ordinance, the obtaining of regulatory approval, and market readiness. To support implementation, the Hong Kong Stock Exchange plans to conduct market testing in the second quarter of 2027. Further details of the testing arrangements will be announced in due course. Exchange Participants currently trading, or intending to trade, in securities subject to the Renminbi payment arrangements for stamp duty and trading-related fees should ensure that appropriate Renminbi settlement arrangements, including the opening of designated Renminbi bank accounts, are in place before the above market testing.