The Shenzhen–Hong Kong Stock Connect

October 06, 2016

The official announcement of the launch of the long-awaited Shenzhen-Hong Kong Stock Connect was jointly made by the Securities and Futures Commission of Hong Kong (SFC) and the China Securities Regulatory Commission (CSRC) in August 2016. Originally expected to go “live” more than a year ago, it is now anticipated that the Shenzhen-Hong Kong Stock Connect will be operational by the end of 2016.

This cross-boundary investment channel will provide mutual stock market access between the Shenzhen Stock Exchange (SZSE) and the Stock Exchange of Hong Kong Limited (SEHK), in a manner similar to that via the existing Shanghai-Hong Kong Stock Connect. This new link will provide global investors with access to Mainland China’s new generation of private sector companies listed in Shenzhen, which include innovative internet and technology companies (in contrast, shares listed on the Shanghai Stock Exchange are those of primarily “large cap” state-owned enterprises). Similarly, eligible investors in Shenzhen will be able to purchase shares listed on the HKSE via their respective local securities brokers.

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