HKEX Enhances Stock Connect with Planned Launch of Master SPSA Service for Fund Managers

Market Operations
Mutual Market
18 Mar 2020

  • New optional Master SPSA service allows pre-trade checking of China A shares on Northbound trading at a fund manager, or aggregate level, rather than at an individual fund level
  • HKEX committed to invest in the continuous enhancements of Stock Connect


Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce today the latest enhancement in Stock Connect, its landmark mutual market access programme with the Mainland exchanges. 

A new Master Special Segregated Account (Master SPSA) service for fund managers will be launched in the first half of 2020, subject to approval from the Securities and Futures Commission and market readiness. This optional Master SPSA service will facilitate more efficient pre-trade checking of Northbound sell orders and average pricing execution at the fund manager level. 

“Stock Connect gives international investors unparalleled access to Mainland China’s equity markets in an efficient, reliable, and convenient manner,” said HKEX Head of Markets Wilfred Yiu.

“Master SPSA Service will provide added benefit and convenience for institutional investors and market participants, and forms part of our ongoing commitment to invest in Stock Connect,” he said.

Under Stock Connect, China A shares must be available for pre-trade checking before they can be sold.  Accordingly, HKEX has built a robust pre-trade checking mechanism for Northbound trading.

The original SPSA service was set up in 2015 for institutional investors to satisfy this requirement, removing the need to transfer shares they control to executing brokers prior to a sale. Master SPSA service is an enhancement to the existing SPSA service to allow pre-trade checking to be conducted at a fund manager, or aggregate level, to help increase their operational efficiencies while maintaining the same post-trade settlement processes at the individual SPSA level for consistency.

More details about the Master SPSA service are available on the HKEX website.


About HKEX

Hong Kong Exchanges and Clearing Limited (HKEX) is one of the world’s major exchange groups, and operates a range of equity, commodity, fixed income and currency markets.  HKEX is the world’s leading IPO market and as Hong Kong’s only securities and derivatives exchange and sole operator of its clearing houses, it is uniquely placed to offer regional and international investors access to Asia’s most vibrant markets.

HKEX is also the global leader in metals trading, through its wholly owned subsidiaries, The London Metal Exchange (LME) and LME Clear Limited.  This commodity franchise was further enhanced with the launch of Qianhai Mercantile Exchange (QME), in China, in 2018.

HKEX launched the pioneering Shanghai-Hong Kong Stock Connect programme in 2014, further expanded with the launch of Shenzhen Connect in 2016, and the launch of Bond Connect in 2017.





Updated 18 Mar 2020