Tuesday February 10 2015

News Source: Global Exchanges

Focus: Other

Type: General




Officials from Shenzhen Stock Exchange (SZSE) and Hong Kong Securities and Futures Commission (HKSFC) met on 3rd February to discuss the progress of Shenzhen-Hong Kong Stock Connect. It was stated that by absorbing the pilot experience from “Shanghai-Hong Kong Stock Connect”, SZSE will work closely with Hong Kong Stock Exchange to explore ways to broaden methods and contents of cooperation and jointly propel the construction of “Shenzhen-Hong Kong Stock Connect” and the internationalization of A-share market.

Both exchanges agreed to adhere to the following three principles in designing schemes for “Shenzhen-Hong Kong Stock Connect”:

  • first, to keep the basic framework and model the same with “Shanghai-Hong Kong Stock Connect” with market players’ business and technical system architecture unchanged;
  • second, to reflect the reciprocity principle and highlight the features of multi-level and multi-product of both markets; to consider expanding the scope of underlying securities based on “Shanghai-Hong Kong Stock Connect”, so as to put the general requirement of “higher level and wider scope” into practice; and
  • third, to design schemes and optimize services on the basis of market demands, and to implement the schemes in a well-advised and well-organized manner.

At present, both exchanges have completed scheme design and started the development of technical systems. Once approved by both regulators, they will organize business and technical preparation and actively propel the implementation. Both of the exchanges agreed to strengthen the comprehensive and pragmatic cooperation under the guidelines of “deeper, broader and more innovative”.

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