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The Securities and Futures Commission (SFC) and the China Securities Regulatory Commission (CSRC) today jointly announced their in-principle approval for changes to the trading calendar for Stock Connect. The changes would apply to both northbound and southbound trading.
Because different public holidays are observed in the Mainland and Hong Kong, investors currently cannot trade through Stock Connect on certain days (Note 1). The proposed changes enable Stock Connect trading on any day when both the Mainland and Hong Kong markets are open, even when the corresponding settlement day falls on a public holiday.
“Stock Connect provides a unique opportunity for Mainland and Hong Kong investors to participate in each other’s market,” said Mr Ashley Alder, the SFC’s Chief Executive Officer. “The enhancements will allow investors to better manage their portfolios through Stock Connect and support the further expansion of the programme.”
The implementation of the enhancements to the trading calendar will take six months to prepare and is subject to regulatory approvals and market readiness. The launch date will be announced in due course.
Note:
- For northbound trading, Stock Connect is now closed on a Mainland market trading day when the corresponding settlement day (ie, T+1) is a public holiday in Hong Kong because banking services are not available to support payment of transactions. Similarly, southbound Stock Connect trading is currently not open on a trading day in Hong Kong when the settlement day falls on a Mainland public holiday.
