Shenzhen-Hong Kong Connect project approved
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The Securities and Futures Commission (SFC) and the China Securities Regulatory Commission (CSRC) today have given in-principle the approval of the structure of the proposed Shenzhen-Hong Kong Stock Connect.
The project will provide mutual stock market access between Hong Kong and Shenzhen via a northbound trading link and a southbound trading link. There will be no aggregate quota under Shenzhen-Hong Kong Stock Connect.
Today’s joint announcement issued by the SFC and the CSRC also abolishes the aggregate quota under Shanghai-Hong Kong Stock Connect with immediate effect.
“The expansion of mutual stock market access represents yet another milestone towards strengthening the interconnectivity between the stock markets in Hong Kong and the Mainland as well as consolidating Hong Kong’s position as a major offshore renminbi centre,” said Mr Carlson Tong, the SFC’s chairman.
The launch of Shenzhen-Hong Kong Stock Connect is subject to the finalization of all necessary regulatory approvals, market readiness and relevant operational arrangements.
A separate announcement on the commencement of Shenzhen-Hong Kong Stock Connect will be made in due course.
Questions & Answers
Q.What kind of trading will the Shenzhen-Hong Kong Stock Connect allow?
What kind of trading will the Shenzhen-Hong Kong Stock Connect allow?
The project will allow mutual stock market access between Hong Kong and Shenzhen. This will operate through both a northbound trading link and a southbound trading link.
Q.Has the Shenzhen-Hong Kong Stock Connect officially launched yet?
Has the Shenzhen-Hong Kong Stock Connect officially launched yet?
No, the launch is conditional on several factors. These include final regulatory approvals, market readiness, and the completion of relevant operational arrangements.
Q.What change has been made to the Shanghai-Hong Kong Stock Connect?
What change has been made to the Shanghai-Hong Kong Stock Connect?
The aggregate quota previously in place for the Shanghai-Hong Kong Stock Connect has been abolished. This change was announced today and took effect immediately.
Q.Who approved the structure of the Shenzhen-Hong Kong Stock Connect?
Who approved the structure of the Shenzhen-Hong Kong Stock Connect?
The Securities and Futures Commission (SFC) and the China Securities Regulatory Commission (CSRC) gave in-principle approval. Their joint announcement was made today.
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