Stock Connect

There’s no date yet, but it’s coming... Shenzhen-Hong Kong Connect remains on track, says HKEX chief Charles Li

PUBLISHED : Friday, 18 November, 2016, 3:21pm
UPDATED : Friday, 18 November, 2016, 3:41pm

The approaching launch of the Shenzhen-Hong Kong Stock Connect remains on track, according to Charles Li, chief executive of the Hong Kong Exchanges & Clearing, who said on Friday that the infrastructure to support the cross-border trading platform is in place and final preparations underway, seemingly suggesting that a green light could be only days away.

“Everything is ready except for the opportunity,” Li said in Shenzhen at a promotional tour of the stock trading link. “Related parties in the market have all been set, just awaiting the starting gun from regulatory authorities.”

Mainland authorities have yet to reveal an official launch date. Hong Kong stocks fluctuated in morning trade on Friday, with some analysts attributing the volatility to a possible delay of the much-anticipated trading platform to early December, disappointing investors who had been betting on a November 21 launch.

However, Li’s comments indicated no major disruption to the launch plan.

“I think the Connect may be launched in quite a few days,” Li said.

Last month, Li said the scheme would start trading on a Monday after mid-November, as this would provide a weekend for the back office staff of brokerage firms to do the preparation.

According to the rules announced by the Chinese authorities, the Shenzhen-Hong Kong Stock Connect will give overseas investors access to 880 Shenzhen stocks via brokers. In the meantime, mainland Chinese investors will also be able to trade 417 Hong Kong stocks. A similar linkup between Shanghai and Hong Kong stock markets was launched in 2014.