HONG KONG: HKEX and Mainland Exchanges Reach Agreement on Eligible Securities under Southbound Trading

Thursday August 2 2018

The Stock Exchange of Hong Kong has reached an agreement with Shanghai and Shenzhen Stock Exchanges in relation to adjusting the inclusion arrangements for eligible securities for Stock Connects Southbound trading. The agreement stated that: the three exchanges should share the same goal in enhancing and improving Stock Connect, with the focus on the growth and development of the scheme.

The meeting also brought up the fact that as mainland investors are not yet familiar with weighted voting right companies there is a need to consider their maturity within the market.

An initial Special Stability Trading Period (SSTP) will be required for Hong Kong-listed WVR companies, following which the WVR shares will be included in Southbound trading under Stock Connect if such shares are otherwise eligible for inclusion under the current Stock Connect rules.

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