Shenzhen-Hong Kong stock trading link operational by Christmas, says HKEX chief
State Council gives green light to new scheme. Chinese Premier Li Keqiang hails announcement as showing ‘China’s capital market is becoming more market-oriented and international. This is a very positive move’
The much-anticipated share-trading link being created between the Hong Kong and Shenzhen stock markets should be up and running within four months, according to officials at Hong Kong Exchanges and Clearing.
Premier Li Keqiang announced earlier on Tuesday that the basic preparation work for the new scheme was ready, adding the State Council has already approved the necessary documentation.
The premier did not give any likely launch date, but at a news conference on Tuesday evening, HKEX chief executive Charles Li Xiaojia said: “We hope we can launch the Shenzhen-Hong Kong Stock Connect before Christmas, and it could be in three months. But the market still needs preparation and regulatory approval.”
Officials from Hong Kong’s financial regulator the Securities and Futures Commission and the China Securities Regulatory Commission also said there will be no total quotas on stock trading using the planned new link, while the existing total quotas for the Shanghai-Hong Kong Stock Connect will also be scrapped.
The Shenzhen-Hong Kong link was initially planned to launch by the end of last year, but that was postponed due to the mainland’s volatile stock market.
The scheme is the second cross border stock trading scheme between China and Hong Kong, after Shanghai, while London and Singapore are also trying to establish similar systems.