Hong Kong Exchanges and Clearing Limited (HKEX) hosted a ceremony at its Exhibition Hall Monday morning to mark today’s successful launch of Shenzhen-Hong Kong Stock Connect (Shenzhen Connect).
Shenzhen Connect builds on the solid foundation of the Shanghai-Hong Kong Stock Connect programme launched in 2014. The expanded list of eligible stocks offers international and Hong Kong investors direct access to most companies traded in Mainland China for the first time.
There are also more choices for Mainland investors, with 100 small cap stocks listed in Hong Kong now available through Shenzhen Connect. The aggregate quota for Stock Connect was abolished in August, allowing institutional investors to execute their investment strategies more flexibly. The daily quota, though it remains in place due to risk management considerations, has effectively doubled.
HKEX Chief Executive Charles Li said the significance of Shenzhen Connect is multi-fold:
Shenzhen Connect proves the Connect programme is not only flexible and scalable but also an important part of Hong Kong’s market infrastructure and our strategy for the long term.
By broadening mutual market access, overseas investors can make use of Hong Kong as a convenient access point to Mainland China, while Mainland investors can use Hong Kong as their first stop as they begin to diversify their assets beyond Mainland China’s borders. By playing this dual role, Hong Kong will grow as a wealth management centre alongside our traditional role as a global capital formation centre.
There were nearly 600 guests at the ceremony and about 150 people from the news media.
For market highlights of the first trading day under Shenzhen-Hong Kong Stock Connect click here.