Stock Connect Programs
On 10 April 2014, the Securities and Futures Commission (SFC) and China Securities Regulatory Commission (CSRC) made a Joint Announcement regarding the in-principle approval for the development of Shanghai Connect for the establishment of mutual stock market access between Mainland China and Hong Kong. Under Shanghai Connect, The Stock Exchange of Hong Kong Limited (SEHK), a whollyowned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), and Shanghai Stock Exchange (SSE) established mutual order-routing connectivity and related technical infrastructure (Trading Links) to enable investors of their respective market to trade shares listed on the other’s market.
Hong Kong Securities Clearing Company Limited (HKSCC), also a whollyowned subsidiary of HKEX, and China Securities Depository and Clearing Corporation Limited (ChinaClear) have established clearing, settlement and nominee arrangements (Clearing Links) to provide for the clearing and settlement of trades executed through the Trading Links and the provision of depository, nominee and other related services to investors in the Mainland and Hong Kong.
Shanghai Connect created for the first time a feasible, controllable and expandable channel for mutual market access between the Mainland and Hong Kong by a broad range of investors, paving the way for further opening up of China’s capital account and RMB internationalisation. Following the successful launch of Shanghai Connect on 17 November 2014, Shenzhen Connect is believed to be its natural extension, and launched on 5 December, 2016. Click here for more.
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