Following today' joint announcement by the China Securities Regulatory Commission (CSRC) and Hong Kong's Securities and Futures Commission (SFC), Hong Kong Exchanges and Clearing Limited (HKEX) will work with the Shenzhen Stock Exchange (SZSE), the Shanghai Stock Exchange (SSE), the China Securities Depository and Clearing Corporation Limited (ChinaClear) and other relevant parties to establish mutual stock market access between Shenzhen and Hong Kong (Shenzhen-Hong Kong Stock Connect) and abolish the aggregate quota under Shanghai-Hong Kong Stock Connect.
The key features of Shenzhen-Hong Kong Stock Connect, including the shares eligible to be traded under the scheme, eligible investors and daily quotas, are set out in the joint announcement. HKEX expects it should take approximately four months from today to complete the preparations for the launch of the Shenzhen-Hong Kong Stock Connect.
"We are excited about Shenzhen-Hong Kong Stock Connect, which will open up another Mainland market for international investors and strengthen the Mainland's links with Hong Kong," said HKEX Chairman C K Chow.
"Under 'One Country, Two Systems', Hong Kong is in a unique position to build important connectivity with the Mainland markets and to facilitate the gradual opening of China's capital account," Mr Chow said. "This will further enhance Hong Kong as an international financial centre."
"We look forward to launching Shenzhen-Hong Kong Stock Connect, which will be an extension of our successful mutual market access programme with Shanghai, so investors in our market and the Mainland market will have an additional secure, reliable channel for investment in the other market in an environment that they're familiar with," said HKEX Chief Executive Charles Li. "We also look forward to enhancing Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect with additional products in the future.
"We aim to build Hong Kong into a mature, comprehensive financial centre that can serve as an offshore wealth management centre for Mainland investors, an offshore pricing centre for the Renminbi and global asset classes for the Mainland, and an offshore comprehensive risk management centre for Mainland investors."
The Stock Exchange of Hong Kong Limited and Hong Kong Securities Clearing Company Limited, wholly-owned subsidiaries of HKEX, will soon distribute circulars to their respective Participants to provide information on today’s joint announcement by the CSRC and SFC along with the related market readiness programmes.
Today's joint announcement by the CSRC and SFC about Shenzhen-Hong Kong Stock Connect and Shanghai-Hong Kong Stock Connect are available here. HKEX’s regulatory announcement is available here.
More information about Shenzhen-Hong Kong Stock Connect and Shanghai-Hong Kong Stock Connect will be available on the HKEX website.
About Stock Connect
Shanghai-Hong Kong Stock Connect, launched on 17 November 2014, is a ground-breaking mutual market access programme which allows investors in Hong Kong and Mainland China to trade and settle eligible shares listed on the other market via local brokerages, exchanges and clearing houses. Under the programme, all trading are settled in Renminbi. As the first step of HKEX’s China Connect Programme, it paves the way for possible mutual market access across other asset classes and connecting with other markets in the future.