Traditional Chinese Simplified Chinese Email this article news.gov.hk
HKSAR Government welcomes official launch of Shanghai-Hong Kong Stock Connect
***********************************************************

     The China Securities Regulatory Commission and the Securities and Futures Commission issued a joint announcement today (November 10), announcing their approval of the official launch of the Shanghai-Hong Kong Stock Connect on November 17. The Hong Kong Special Administrative Region Government welcomed the announcement.

     The Shanghai-Hong Kong Stock Connect is a mutually beneficial collaboration project. Through enhancing mutual stock market access between Hong Kong and Shanghai, the programme promotes the gradual opening up of the Mainland's capital accounts as well as the internationalisation of the Renminbi (RMB). The collaboration project will reinforce Hong Kong's position as a premier international financial centre and also strengthen Hong Kong's role as an offshore RMB business centre.

     The Financial Secretary, Mr John C Tsang, said, "I am very pleased that the Shanghai-Hong Kong Stock Connect is confirmed to be launched next Monday. The preparatory work of the Shanghai-Hong Kong Stock Connect has been carried out in a step-by-step manner from its conception to rollout. It is gratifying for me to note the relevant Central Authorities¡¦ staunch support for us in the process. The relevant regulatory authorities of the two sides as well as exchanges and clearing companies of Hong Kong and Shanghai have carried out tremendous preparatory work, and I would like to thank all relevant colleagues for their efforts over the past years. The Shanghai-Hong Kong Stock Connect will be implemented very soon. We will continue to exert our best efforts to carry out various monitoring and risk management work so that the Shanghai-Hong Kong Stock Connect will contribute to the economic and financial reforms of our country and reinforce Hong Kong's position as an international financial centre."

     The pilot programme on mutual stock market access between Hong Kong and Shanghai was announced by Premier Li Keqiang at the opening ceremony of the Bo'ao Forum on April 10. It will allow eligible Mainland investors to trade directly for the first time in eligible stocks listed on the Stock Exchange of Hong Kong (SEHK) through the Shanghai Stock Exchange (SSE). At the same time, it will also allow Hong Kong and overseas investors to trade for the first time in eligible stocks listed on the SSE through the SEHK directly.

     Since the Shanghai-Hong Kong Stock Connect is a pilot project, it will be implemented in a progressive and risk-controlled manner, and cross-border investment will be subject to quotas. The aggregate net purchase of SSE securities by Hong Kong and overseas investors will be capped by a limit of RMB300 billion and there is a daily net purchase quota of RMB13 billion. Similarly, the purchase of SEHK securities by eligible Mainland investors will be capped by an aggregate net quota of RMB250 billion and a daily net quota of RMB10.5 billion. The quotas may be subject to appropriate adjustments in accordance with the actual operational circumstances.

Ends/Monday, November 10, 2014
Issued at HKT 15:43

NNNN

Print this page