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.