- Eligible shares of international companies that are primary-listed in Hong Kong to be included in Southbound trading
- Scope of eligible stocks for Southbound trading under Shanghai-Hong Kong Stock Connect will be expanded to align with Shenzhen-Hong Kong Stock Connect
- Constituent stocks of the SSE A Share Index and the SZSE Composite Index that meet certain requirements such as liquidity and market capitalisation criteria will be eligible for Northbound trading
Hong Kong Exchanges and Clearing Limited (HKEX) welcomes the joint announcement today (Monday) by Hong Kong’s Securities and Futures Commission and the China Securities Regulatory Commission on the further expansion of eligible stocks under Stock Connect.
Working together with regulators, HKEX has reached an agreement with Shanghai Stock Exchange (SSE), Shenzhen Stock Exchange (SZSE) and China Securities Depository and Clearing Corporation Limited to expand the scope of eligible stocks under Stock Connect.
Accordingly, the scope of eligible stocks will be expanded for both the Northbound and Southbound trading links as follows:
Southbound trading: The scope of eligible stocks will be expanded to include stocks of international companies that are primary-listed in Hong Kong, and are 1) constituent stocks of the Hang Seng Composite LargeCap Index or Hang Seng Composite MidCap Index, or 2) constituent stocks of the Hang Seng Composite SmallCap Index with a market capitalisation of HK$5 billion or above.
In addition, the scope of eligible stocks for Southbound trading under Shanghai-Hong Kong Stock Connect will be expanded to include constituents of the Hang Seng Composite SmallCap Index with a market capitalisation of HK$5 billion or above, which will align with the existing scope of eligible stocks for southbound trading under the Shenzhen-Hong Kong Stock Connect.
Northbound trading: The scope of eligible stocks for Northbound trading under Stock Connect will be changed to 1) constituent stocks of the SSE A Share Index and the SZSE Composite Index which have a market capitalisation of RMB5 billion or above and meet certain requirements such as liquidity criteria; and 2) SSE/SZSE-listed stocks of companies which have issued both A-shares and H-shares.
HKEX Chairman, Laura M Cha said: “This is another exciting milestone for our landmark Stock Connect programme, providing Mainland investors with more opportunities to invest overseas and enabling international investors to enjoy wider access to the Mainland China markets. This latest enhancement to Stock Connect will help boost the healthy development of both Mainland China and Hong Kong financial markets by bringing new connectivity, liquidity and vibrancy.”
HKEX Chief Executive Officer Nicolas Aguzin said: “The inclusion of eligible Hong Kong stocks issued by international companies in Stock Connect will significantly enhance the attractiveness of Hong Kong as a world-leading listing venue. International issuers will not only get the full benefits of a listing in Hong Kong, but will also gain access to an enhanced and significant regional investor base. We look forward to continuing to work with our Mainland partners, regulators and the market to further enhance the mutual access between the capital markets of Mainland China and Hong Kong, as we build on our strategy of Connecting China and the World.”
Upon receiving approval from the regulators, HKEX, SSE and SZSE will set out the specific requirements for the inclusion of eligible stocks and the relevant review mechanism.
HKEX will work with its partners in Hong Kong and Mainland China to make preparations for the eligibility expansion, which is expected to take around three months. Subject to regulatory approval and market readiness, a further announcement on the official implementation date will be made in due course.
Please refer to the joint announcement for more details of the expansion.
Hong Kong Exchanges and Clearing Limited (HKEX) is a publicly-traded company (HKEX Stock Code:388) and one of the world’s leading global exchange groups, offering a range of equity, derivative, commodity, fixed income and other financial markets, products and services, including the London Metals Exchange.
As a superconnector and gateway between East and West, HKEX facilitates the two-way flow of capital, ideas and dialogue between China and the rest of world, through its pioneering Connect schemes, increasingly diversified product ecosystem and its deep, liquid and international markets.
HKEX is a purpose-led organisation which, across its business and through the work of HKEX Foundation, seeks to connect, promote and progress its markets and the communities it supports for the prosperity of all.