The Securities and Futures Commission (SFC) and the China Securities Regulatory Commission (CSRC) today jointly announced a series of new measures to further deepen practical cooperation and foster closer coordinated development between the two markets.
The measures cover a wide range of areas, including listing and fundraising, index cooperation, futures products, exchange-traded funds (ETFs), the internationalisation of financial institutions, green finance and professional qualification facilitation. They reflect the comprehensive cooperation framework established between the two regulators and their shared commitment to promoting the high-quality development of the two markets. Both regulators believe that these measures will not only help consolidate and enhance Hong Kong’s status as an international financial centre, but also support the development of first-class investment banks and investment institutions through regulatory cooperation, promote deeper participation by the two markets in global financial governance and regional regulatory collaboration, and further enhance the international influence of China’s capital markets.
The measures include:
- Continuing to support eligible Mainland enterprises in raising funds through listings in Hong Kong, eligible Hong Kong-listed companies in seeking listings in the Mainland, and eligible Hong Kong enterprises in issuing bonds in the Mainland, so as to enable them to better leverage the markets and resources of both places for financing and development;
- Supporting index providers in both places to strengthen cooperation and launch more indices based on Chinese assets, thereby enhancing the international profile of Chinese indices and Chinese assets;
- Deepening cooperation between the futures markets of both places to support the launch of a wider range of RMB-denominated and settled futures products in Hong Kong;
- Supporting institutions in both places to launch more ETF products based on the two markets and oriented toward China’s modern industrial system, and implementing a fast-track registration mechanism for conventional equity ETF products;
- Supporting securities firms and fund companies with solid capabilities, sound operations and high management standards in expanding overseas in accordance with the law and using Hong Kong as a base to develop their international business in an orderly manner, with a view to advancing the development of first-class investment banks and investment institutions;
- Promoting pilot programmes for listed companies in both places to disclose climate-related transition plans, with a view to jointly advancing the development of green finance; and
- Exploring ways to encourage and support securities and futures professionals working at Hong Kong banks in applying for relevant Mainland professional qualifications through a streamlined process.
Building on these initiatives, the SFC and the CSRC will further strengthen regulatory coordination between the two markets and deepen their participation in global financial governance, providing a solid foundation for the stable and healthy development of both markets. The initiatives include:
- Continuing to strengthen regulatory cooperation on issuance and listing across the two markets, and advancing cross-boundary two-way direct financing for eligible enterprises in an orderly manner, with a view to fostering complementary strengths and coordinated development between the two markets;
- Continuing to strengthen regulatory cooperation between the two markets on the supervision of intermediaries, enhancing risk monitoring and information-sharing mechanisms, and promoting the sound and compliant operation of industry institutions; and
- Deepening engagement in global financial governance and regional regulatory cooperation, and jointly promoting the stable and healthy development of regional capital markets.
“I would like to express my profound appreciation to the CSRC. The launch of these new measures is a testament to the close collaboration and joint efforts between the two regulators. This series of important measures focuses on key areas and will help enhance the international influence and attractiveness of China's capital markets, while providing strong support for the further development of Hong Kong's capital market. They also set out a clear path towards a higher level of connectivity between the two markets and provide strong momentum for their continued coordinated development. Looking ahead, Hong Kong will continue to leverage its unique strengths and play an irreplaceable role in supporting the nation’s development as a financial powerhouse,” said Dr Kelvin Wong, the SFC's Chairman.
“We will continue to work closely with the CSRC to take forward these initiatives and implement the related arrangements, with the aim of enhancing the global influence and competitiveness of the institutions, professionals and products of the Mainland and Hong Kong capital markets, while creating more opportunities for global investors to participate in China’s growth story. I, together with the SFC, will also continue to actively promote regional regulatory cooperation to foster greater market integration and the sound development of regional markets,” said Ms Julia Leung, the SFC’s Chief Executive Officer.
