China News Service, Shanghai, December 19th (Gao Zhimiao) The China Securities Regulatory Commission and the Hong Kong Securities Regulatory Commission issued a joint announcement on the 19th, agreeing in principle to the two exchanges to further expand the scope of stock interconnection targets.
In order to further interpret the specific arrangements and clarify market expectations, the relevant person in charge of the Shanghai Stock Exchange answered questions from reporters on the same evening.
According to the relevant person in charge of the Shanghai Stock Exchange, since the opening of Shanghai-Hong Kong Stock Connect, in order to better adapt to the development level of the two markets and meet the growing investment needs of investors in the two places, the scope of interconnection bids has continued to expand.
In recent years, stocks on the Science and Technology Innovation Board have been included in the Shanghai Stock Connect, and the shares of WVR companies and biotechnology companies listed on the Hong Kong Stock Exchange have been included in the Hong Kong Stock Connect. Open-end index funds) products were included in the interconnection targets, the "capacity" of Shanghai-Hong Kong Stock Connect continued to expand, investment varieties became more and more abundant, and the efficiency and convenience of cross-border investment were significantly improved.
"We believe that the expansion of the scope of the target is another powerful measure to deepen the practical cooperation between the capital markets of the two places. It is of positive significance to promote the coordinated development of the two markets, and will help the mainland capital market to achieve a higher level of two-way opening." The person in charge said.
It is understood that the expansion of the Shanghai Stock Connect stock target will select the constituent stocks of the Shanghai Stock Exchange A-share Index with a market value of 5 billion yuan and above and meet certain liquidity standards to replace the original Shanghai Stock Connect SSE 180 Index and SSE 380 Index. The relevant requirements for A+H share companies remain unchanged.
This adjustment will more broadly include stock products into the target range, better meet the investment needs of investors, and further enhance the influence of the A-share market.
The Shanghai Stock Exchange stated that the adjustment of the scope of Hong Kong Stock Connect bids is mainly reflected in two aspects: one is to include major foreign companies listed in Hong Kong that meet the requirements into the scope of bids; The Hong Kong Stock Connect under the Shanghai-Hong Kong Stock Connect is the same, that is, the Hong Kong Stock Connect under the Shanghai-Hong Kong Stock Connect will be included in the Hang Seng Composite Small Cap Index constituent stocks with a market capitalization of HK$5 billion and above.
The scope of other existing Hong Kong Stock Connect bids remains unchanged.
In the follow-up, the Shanghai Stock Exchange pointed out that it will promptly revise and improve relevant business rules with relevant parties, and complete business and technical preparations related to target expansion to ensure the smooth implementation of relevant plans. The estimated preparation time is about 3 months.
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