The Gateway to Algorithmic and Automated Trading

Shenzhen-Hong Kong Stock Connect launches

First Published 5th December 2016

HKEX celebrates launch of Shenzhen-Hong Kong Stock Connect.

Charles Li, HKEX

Charles Li, HKEX

Hong Kong Exchanges and Clearing has announced the successful launch of Shenzhen-Hong Kong Stock Connect (Shenzhen Connect).

"Shenzhen Connect is taking our mutual market access to a new horizon by opening up another Mainland market for international and Hong Kong investors. Under 'One Country, Two Systems', Hong Kong is in a unique position to build connectivity with the Mainland markets and to facilitate the gradual and orderly opening of the Mainland's capital account," said HKEX Chairman C K Chow.

Shenzhen Connect builds on the foundation of the Shanghai-Hong Kong Stock Connect programme launched in 2014. The expanded list of eligible stocks offers international and Hong Kong investors direct access to most companies traded in Mainland China for the first time. There are also more choices for Mainland investors, with 100 small cap stocks listed in Hong Kong now available through Shenzhen Connect. The aggregate quota for Stock Connect was abolished in August, allowing institutional investors to execute their investment strategies more flexibly. The daily quota, though it remains in place due to risk management considerations, has effectively doubled.

HKEX Chief Executive Charles Li said the significance of Shenzhen Connect is multi-fold. "By broadening mutual market access, overseas investors can make use of Hong Kong as a convenient access point to Mainland China, while Mainland investors can use Hong Kong as their first stop as they begin to diversify their assets beyond Mainland China's borders."