Newsflash: The Shenzhen–Hong Kong Stock Connect

December 06, 2016

The Securities and Futures Commission of Hong Kong (SFC) and the China Securities Regulatory Commission (CSRC) issued a joint announcement on 25 November 2016 approving the launch of the long-awaited Shenzhen-Hong Kong Stock Connect and trading commenced on 5 December 2016. This supplements the prior joint official announcement made by the SFC and the CSRC in August 2016.

The Shenzhen-Hong Kong Stock Connect is a cross-boundary investment channel which provides 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.1 Global investors may now access Mainland China’s new generation of private sector companies listed in Shenzhen using this new link, 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). In the same vein, eligible investors in Shenzhen will be able to purchase shares listed on the HKSE via their respective local securities brokers.

Read "The Shenzhen–Hong Kong Stock Connect."