China News Service, December 19th. According to the news from the website of the China Securities Regulatory Commission on the 19th, in order to further deepen the stock market interconnection mechanism between the mainland and Hong Kong (hereinafter referred to as the interconnection) and promote the common development of the capital markets of the two places, the China Securities Regulatory Commission ( hereinafter referred to as the China Securities Regulatory Commission), the Hong Kong Securities and Futures Commission (hereinafter referred to as the Hong Kong Securities Regulatory Commission) agreed in principle to the two exchanges to further expand the scope of stock interconnect targets.
The announcement is as follows:
1. The China Securities Regulatory Commission has announced in the early stage that it will expand the stock targets of the Stock Connect with the Hong Kong side, and promote the inclusion of qualified foreign companies listed in Hong Kong and more stocks of Shanghai and Shenzhen listed companies into the target range.
Under the joint support and promotion of the two securities regulatory commissions, recently, Shanghai Stock Exchange, Shenzhen Stock Exchange, Hong Kong Stock Exchange Limited, China Securities Depository and Clearing Corporation Limited, and Hong Kong Securities Clearing Company Limited have expanded the scope of stock interconnection targets. The overall plan reached a consensus.
2. This time, Stock Connect intends to expand the scope of targets in both directions. The specific adjustments are as follows:
The subject range of the Shanghai-Shenzhen Stock Connect has been adjusted to: constituent stocks of the Shanghai Stock Exchange A-Share Index/Shenzhen Stock Exchange Composite Index with a market capitalization of RMB 5 billion and above and meeting certain liquidity standards, and A-share stocks listed on the Shanghai Stock Exchange/Shenzhen Stock Exchange. +A shares of H-share companies.
The target range of Hong Kong Stock Connect is adjusted to: on the basis of the current Hong Kong Stock Connect stock targets, the stocks of major foreign companies listed in Hong Kong that meet the relevant conditions and are included in the Hang Seng Composite Index, that is, the stocks of the Hang Seng Composite Large Cap Index, the Hang Seng Composite Mid Cap Index, and a market capitalization of 50 Major foreign companies listed in Hong Kong that are constituent stocks of the Hang Seng Composite Small Cap Index worth HK$100 million or more are included in the Hong Kong Stock Connect according to the current regulations; Under the Hong Kong Stock Connect, the Hong Kong Stock Connect will be included in the Hang Seng Composite Small Cap Index with a market capitalization of HK$5 billion and above.
With the approval of the China Securities Regulatory Commission and the Hong Kong Securities Regulatory Commission, the exchange may formulate regulations on the specific conditions and adjustment mechanisms for the inclusion of targets.
3. For matters not mentioned in this joint announcement, such as transactions, settlements, investment quotas, investor suitability, cross-border supervision and law enforcement cooperation between the two places, and counterpart liaison mechanisms, the provisions of the previously released joint announcement on stock exchange interconnection still apply. Regulations.
The exchanges and depository and clearing institutions of the two places will adjust and improve relevant business rules, and actively promote the development and testing of technical systems, investor education and other preparatory work.
The above-mentioned expansion plan can only be formally implemented after the relevant transaction settlement rules and systems are prepared, all relevant regulatory approvals have been obtained, and market participants have fully adjusted their business and technical systems.
From the date of this joint announcement to the official implementation of the above plan, it will take about 3 months to prepare, and the official implementation time will be notified by the Exchange.
(China New Finance and Economics)