China’s market regulator launches 5 measures to help rescue Hong Kong’s battered stock market

Regulator said it would deepen its cooperation with Hong Kong through measures that aim to optimise the city’s status as an international financial centre

Move comes days after Xia Baolong, Beijing’s top man on Hong Kong affairs, said more support policies were in the pipeline

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China’s regulators have announced a package of measures to boost liquidity in Hong Kong’s troubled stock market. Photo: Jelly Tse.

Published: 8:34pm, 19 Apr 2024Updated: 11:47pm, 19 Apr 2024

China’s capital market regulators have announced a package of measures to boost liquidity, attract international investors and enhance competitiveness between the mainland and Hong Kong, offering a salve to the city’s market woes.

The China Securities Regulatory Commission (CSRC) announced on Friday it would “deepen” its cooperation with Hong Kong through five new measures which aim to optimise the city’s status as an international financial centre.

The aim is to promote the coordinated development of the capital markets of the mainland and Hong Kong.

The measures include plans to relax the eligibility criteria for exchange-traded fund (ETF) products in the Stock Connect mechanism that links the two financial hubs. The watchdog also aims to loosen the listing rules for Chinese companies wanting to launch initial public offerings (IPO) in Hong Kong.

The CSRC said it would enhance its communication and coordination with the relevant departments to support qualified mainland industry leaders wishing to go public in Hong Kong.

Other measures include allowing qualified real estate investment trusts (REITs) from the mainland and Hong Kong access to the Shanghai-Shenzhen-Hong Kong Stock Connect channel, and including yuan-denominated stock trading counters on the Hong Kong stock side of the cross-border mechanism.