China News Service, Hong Kong, December 19th. The China Securities Regulatory Commission and the Hong Kong Securities and Futures Commission issued a joint announcement on the 19th, announcing that they agreed in principle to further expand the scope of eligible stocks under the Shanghai-Shenzhen-Hong Kong Stock Connect.
The Hong Kong SAR Government welcomes it.
The Chief Executive of the Hong Kong Special Administrative Region, Li Jiachao, said that the SAR government has been committed to deepening and expanding the interconnection between the mainland and Hong Kong financial markets.
The measures announced today by the regulators of the two places are another landmark move following the implementation of the inclusion of exchange-traded funds in the Stock Connect mechanism in July this year. There are more diversified investment options, injecting new impetus into the liquidity of the cross-border market.
Chen Maobo, the financial secretary of the SAR government, said that the arrangement for expanding the interconnection has strategic significance for the future development of Hong Kong's securities market and the higher quality opening up of the mainland's securities market.
Among them, the inclusion of qualified foreign company stocks in Hong Kong Stock Connect will not only enrich the asset allocation options of mainland investors, but also help Hong Kong attract other high-quality international companies to list in Hong Kong, enhance the competitiveness of Hong Kong's financing platforms, and benefit the Hong Kong market further development.
According to the joint announcement, the scope of eligible stocks under Shanghai-Shenzhen Stock Connect will be expanded to include constituent stocks of the Shanghai A-Share Index and the Shenzhen Composite Index with a market capitalization of RMB 5 billion or above and meeting certain liquidity standards, as well as simultaneous issuance of A and H shares and stocks of companies listed on the Shanghai Stock Exchange or Shenzhen Stock Exchange; the scope of eligible stocks under Hong Kong Stock Connect will include stocks of foreign companies that meet the relevant conditions.
In addition, the Hong Kong Stock Connect under the Shanghai Stock Connect will also be consistent with the Hong Kong Stock Connect under the Shenzhen Stock Connect, that is, the constituent stocks of the Hang Seng Composite Small Cap Index with a market capitalization of HK$5 billion or above will be included.
The above adjustments will be carried out after the relevant rules and system preparations are completed.
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