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China and Hong Kong mark 25th anniversary of handover with launch of ETF Connect on July 4, ‘a gift’ that will bring their capital markets even closer
- Mainland watchdog China Securities Regulatory Commission and Hong Kong’s Securities and Futures Commission reach agreement on the inclusion of ETFs
- The HKEX’s initial list has 83 mainland-listed ETFs that can be traded by investors, while Shanghai and Shenzhen exchanges have included only four Hong Kong-listed ETFs
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The inclusion of exchange-traded funds (ETFs) in Stock Connects linking markets in Shanghai and Shenzhen with Hong Kong will kick off on July 4, according to a joint statement by the regulators of Hong Kong and the mainland on Tuesday.
The announcement comes ahead of the July 1 anniversary celebrating 25 years of Hong Kong’s handover to the mainland, and is expected to strengthen the city’s role as a connector between China and the rest of the world.
“ETF Connect is an important milestone because for the first time Stock Connect is expanded beyond stock trading,” said Ashley Alder, chief executive of the Securities and Futures Commission as he announced the launch date of the scheme.
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“It will catalyse Hong Kong’s growth as an ETF hub and underscore Hong Kong’s unique role connecting global capital with the mainland.”
The SFC and the China Securities Regulatory Commission (CSRC) have agreed on arrangements for cross-boundary regulatory cooperation and investor education in relation to the inclusion of ETFs in Stock Connect and will enhance cooperation on enforcement against cross-boundary illegal activities and market misconduct to maintain an orderly market and protect investors.
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