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Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce today (Friday) it has reached an agreement with Shanghai Stock Exchange (SSE), Shenzhen Stock Exchange (SZSE) and China Securities Depository and Clearing Corporation (CSDC) on the Stock Connect inclusion arrangements for eligible ETFs.
The agreement is made in accordance with a previous joint announcement by the Securities and Futures Commission (SFC) and China Securities Regulatory Commission (CSRC).
The agreement reflects the ongoing commitment by HKEX and its Mainland partners to continue expanding and enhancing the landmark mutual market access programme between the capital markets of Mainland China and Hong Kong.
As a key enhancement of Stock Connect, the inclusion of ETFs will provide investors with more options by broadening the existing Connect product ecosystem as well as support the continued development of both markets.
ETFs are a low cost investment option and a popular choice for diversification. Adding eligible ETFs into Stock Connect will support the healthy development of ETFs in both the Hong Kong and Mainland China markets by expanding their investor base.
Next, HKEX, SSE, SZSE and CSDC will work closely on the details of inclusion, including business and technical preparations such as amendments to relevant rules. It is estimated that the preparation work will take approximately six months to complete.
