SFC issues reminder on RMB trading

SFC reminded investors to gets details of processes for their transactions when trading renminbi securities in the secondary market.

The commission said investors interested in trading renminbi securities on the Hong Kong Stock Exchange should first check the readiness of their intermediary. If their brokerage or bank is not on the list, investors should check if that intermediary is trading and clearing the renminbi securities via other participants which are confirmed to be ready.
 
Investors trading renminbi securities in the secondary market have to pay stamp duty, the Securities & Futures Commission levy and Stock Exchange trading fees. These charges are collected through the Stock Exchange from intermediaries in Hong Kong dollars using the exchange rate determined by the Monetary Authority on the day of the trade.
 
Investors should check with their intermediary the settlement currency of their renminbi transactions, how the exchange rate is set if the trade is to be settled in a currency other than renminbi and the payment method. Finding out about the intermediary’s policy on settlement defaults is also a must.