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Shenzhen-Hong Kong Stock Connect approved in principle

First Published 16th August 2016

China Securities Regulatory Commission and the Securities and Futures Commission have approved in principle the establishment of mutual stock market access between Shenzhen and Hong Kong. HKEX expects it to take approximately four months to complete the technical and operational preparations for the launch.

Following a joint announcement by the China Securities Regulatory Commission and Hong Kong's Securities and Futures Commission, Hong Kong Exchanges and Clearing (HKEX) said it will work with the Shenzhen Stock Exchange, the Shanghai Stock Exchange, the China Securities Depository and Clearing Corporation 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.

HKEX Chairman C K Chow said: "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.