INTERNATIONAL: Shanghai-Hong Kong Stock Connect approved, to commence 17 November

Monday November 10 2014

The Securities and Futures Commission (SFC) and the China Securities Regulatory Commission (CSRC) have approved the launch of the Shanghai-Hong Kong Stock Connect pilot scheme following the finalization of all necessary regulatory approvals and relevant regulatory operational arrangements required for its commencement.

Trading through the Shanghai-Hong Kong Stock Connect will commence on 17 November 2014.

The regulatory arrangements for the Shanghai-Hong Kong Stock Connect include a new benchmark for cross-boundary regulatory operation including the timely provision of client and order data to facilitate real time surveillance of market activity by the SFC and the CSRC for markets in Hong Kong and Shanghai respectively under the pilot programme.

The two regulators earlier also entered into a Memorandum of Understanding on strengthening cross-boundary regulatory and enforcement cooperation under the pilot programme.

Further to our previous updates, the scheme will allow foreign investors to trade in restricted Chinese A-shares, and to conduct short-selling activities.

Click on the above link for more details.