Hong Kong Exchanges and Clearing Limited (HKEX) welcomes the joint announcement today (Friday) by the China Securities Regulatory Commission (CSRC) and Hong Kong’s Securities and Futures Commission (SFC), on the inclusion of Exchange Traded Funds (ETFs) into Stock Connect (the Inclusion). HKEX is pleased to announce the detailed arrangements of the Inclusion.
HKEX Chief Executive Officer Nicolas Aguzin said: “This is the next exciting development in our Connect Programme. ETF inclusion in Stock Connect will be mutually beneficial to both Mainland China and Hong Kong’s capital markets, supporting the continued sustainable growth of both, at a time that participants and customers are demanding ever more and better connectivity. We look forward to working with our Mainland partners and the market as we continue to enhance our mutual market connectivity.”
ETFs are, for many, a cost-efficient investment option and a popular choice for diversification. Adding eligible ETFs into Stock Connect will support the healthy development of ETFs in both the Hong Kong and Mainland China markets by expanding their respective investor bases.
On 24 December 2021, HKEX, Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE) announced their support on the Inclusion, reflecting the ongoing commitment by HKEX and the Mainland exchanges to continue expanding and enhancing the landmark mutual market access programme between Hong Kong and Mainland China’s capital markets.
Please visit the designated page or refer to the circular issued today for details of the Inclusion including the eligibility criteria, trading arrangements, and Frequently Asked Questions. The Inclusion is subject to regulatory approval. A further announcement on the official launch date will be made in due course.
Hong Kong Exchanges and Clearing Limited (HKEX) is one of the world’s major exchange groups, and operates a range of equity, commodity, fixed income and currency markets. HKEX is the world’s leading IPO market and as Hong Kong’s only securities and derivatives exchange and sole operator of its clearing houses, it is uniquely placed to offer regional and international investors access to Asia’s most vibrant markets.
HKEX is also the global leader in metals trading, through its wholly owned subsidiaries, The London Metal Exchange (LME) and LME Clear Limited. This commodity franchise was further enhanced with the launch of Qianhai Mercantile Exchange (QME), in China, in 2018.
HKEX launched the pioneering Shanghai-Hong Kong Stock Connect programme in 2014, further expanded with the launch of Shenzhen Connect in 2016, and the launch of Bond Connect in 2017.