Hong Kong boosts Stock Connect to Mainland China

The Hong Kong Securities and Futures Commission (SFC) and the China Securities Regulatory Commission (CSRC) have jointly announced their in-principle approval for the further expansion of the scope of stocks eligible for trading under Mainland-Hong Kong Stock Connect.  

After the expansion, which will cover both northbound and southbound trading, Stock Connect is expected to include stocks that account for more than 80% of the equity trading in each market. This will strengthen mutual access between the Mainland and Hong Kong stock markets and provide additional liquidity for both markets.

Julia Leung, SFC acting chief executive officer, said: "The further expansion of the scope of Stock Connect will give international investors more choice in A shares and consolidate Hong Kong's position as a gateway to Mainland China. In particular, the inclusion of foreign companies primary listed in Hong Kong is of strategic importance to Hong Kong as a leading fundraising platform for international companies."

Preparations for the implementation of these adjustments will take about three months, subject to market readiness and the completion of operational arrangements. The stock exchanges will announce the implementation details and the official launch date in due course.