Hong Kong Exchanges and Clearing Limited (HKEX) is today pleased to be celebrating the 7th Anniversary of Stock Connect, the landmark mutual market access programme linking Hong Kong and Mainland China’s equity capital markets. Hong Kong- Shanghai Stock Connect was launched on 17 November 2014 while Hong Kong-Shenzhen Stock Connect followed two years later, on 5 December 2016. The Stock Connect programme gave Mainland and international investors direct access to each other’s market for the very first time. 

Stock Connect has become the primary cross-border investment channel of choice for regional and international investors seeking access to and from the Mainland and Hong Kong markets. Since inception and throughout this year, Stock Connect has repeatedly hit new trading volume records, seeing sustained volume growth across both Northbound and Southbound trading. 

As at 10 November 2021, average daily turnover of Northbound trading reached RMB122.3 billion in 2021, representing year-on-year growth of 35%; while average daily Southbound turnover reached HK$44.1 billion in 2021, up 87% from the same period last year. Cumulative Northbound Stock Connect turnover since launch 7 years ago totalled RMB 64.0 trillion, resulting in a net capital inflow into the A-share market of RMB1.5 trillion.  Hong Kong and international investors held a total of RMB2.6 trillion in A-shares listed on the Shanghai and Shenzhen exchanges as at 10 November 2021, compared with RMB86.5 billion as at the end of 2014, shortly after the launch of Stock Connect.

As at 10 November 2021, cumulative Southbound Stock Connect turnover since launch 7 years ago totalled HK$23.1 trillion, bringing a net capital inflow of HK$2.1 trillion into the Hong Kong market.  Mainland investors held HK$2.2 trillion worth of Hong Kong-listed shares through Stock Connect as at 10 November 2021, up from HK$13.1 billion at the end of 2014.

In recent years, HKEX has worked closely with its Mainland exchange partners, enhancing and expanding Stock Connect to benefit Hong Kong, Mainland and international investors.  Major enhancements include the launch of the HKEX Synapse pilot programme to improve the efficiency and transparency of Northbound settlement, and a new Master Special Segregated Account service for fund managers to support Northbound trading. Other refinements include the removal of the aggregate quota, increased daily quotas and the launch of an investor identification model for both Northbound and Southbound trading.

In addition, the first batch of Hong Kong listed pre-revenue biotech companies were successfully included in Southbound trading on 28 December 2020, following consensus on inclusion reached by HKEX and the Shanghai and Shenzhen stock exchanges.  Eligible A shares listed on Shanghai’s STAR Market and their corresponding H shares were also included into Stock Connect from 1 Feb 2021.

HKEX looks forward to working closely with the Mainland stock exchanges, regulators, its customers and the broader market on bringing even more opportunities to companies and investors in connecting China, connecting the world.