Market Turnover


Statistics Show Stock Connect's Quota Usage has been Efficient

Mutual Market
14 Dec 2014

Total turnover values under Shanghai-Hong Kong Stock Connect (Stock Connect), the mutual market access programme of Hong Kong Exchanges and Clearing Limited (HKEx) and the Shanghai Stock Exchange, have often been much larger than the quota usage, and on average Southbound trading's daily turnover value is nearly twice the daily quota usage, according to statistics from the first four weeks of the programme.

On 9 December, the total turnover value of Northbound trading was RMB10.24 billion, nearly nine times the quota usage of RMB1.16 billion because of nearly equal buy and sell trade value that day.  In Southbound trading, daily turnover of RMB499 million (HK$624 million) was 353.8 per cent of the quota usage of RMB141 million on 24 November due to the narrow gap between buy and sell trade value on the day.

For the first 20 trading days, from 17 November 2014 when Stock Connect was launched to 12 December 2014, the average daily turnover in Northbound trading totalled RMB5.84 billion, while the average Northbound quota usage was RMB3.29 billion, or 25.3 per cent of the Daily Quota.  In the same period, the average daily turnover in Southbound trading was RMB757 million (HK$946 million), with an average daily quota usage of RMB477 million, or 4.5 per cent of the Daily Quota.

The largest total turnover value of Northbound trading from 17 November to 12 December was RMB12.1 billion on 17 November and the top Southbound figure for the same period was RMB2.03 billion (HK$2.50 billion) on 5 December. 

Full-day buy turnover value exceeded sell turnover in both directions throughout Stock Connect’s first four weeks.

Aggregate quota usage as of the end of trading on 12 December 2014 was RMB64.5 billion in Northbound trading and RMB8.3 billion of the aggregate quota in Southbound trading.

Ninety-one out of 97 eligible SEHK* Participants (EPs) have participated in Northbound trading and over the past four weeks, with an average of 70 EPs per day trading under Stock Connect.  During the period, 547 out of 568 securities eligible for Northbound trading were traded.

For additional statistics from the first four weeks of trading, please see the charts in the appendix.

"The launch of Stock Connect has been a great success because it is a very important breakthrough, beginning a new era of the world's last major capital market opening.  It also reinforces Hong Kong’s position as a leading international financial centre," said HKEx Chief Executive Charles Li.

"Since its launch, Stock Connect has been running smoothly with complete operational stability, giving both international and Chinese investors convenient and sustainable access," he said.  "Like any new market infrastructure, we anticipate utilisation will increase gradually as investors gain better understanding of the programme and assess the investment opportunities that are available to them for the first time."

"HKEx is truly proud of having played a part in the beginning of this long and historic journey," Li added.

First Change of Eligible Stocks
Investors can trade any of the eligible stocks under Stock Connect.  Since the launch of the scheme, there was one set of changes to the list of eligible stocks for Southbound trading which took effect on 8 December 2014 due to changes to Hang Seng Composite LargeCap and MidCap Indices.  As a result, five Hong Kong stocks were added to the list of eligible securities for Southbound trading.  For details, please refer to the list on the Shanghai Stock Exchange website.

With effect from 15 December 2014, due to changes to the SSE 180 and 380 indices, there will be 28 additions to the list of eligible stocks for Northbound trading (stocks on the list can be bought or sold) and 27 of the stocks now on list will be removed.  The removed stocks will be transferred to list of Special China Connect Securities (stocks on this list can only be sold).  After the changes, there will be 569 eligible stocks (both buy and sell) and 27 Special China Connect Securities (sell only).  Lists showing securities changes and eligible stocks for Northbound trading are available at HKEx website.  For eligible stock details, please see Question 5 in the Frequently Asked Questions.

* SEHK stands for the Stock Exchange of Hong Kong, a wholly owned subsidiary of HKEx.


Trading statistics of Stock Connect between 17 November and 12 December. 






Updated 14 Dec 2014