With the upcoming Shenzhen-Hong Kong Stock Connect One-year Anniversary, Shenzhen Stock Exchange (“SZSE”) , Hong Kong Exchanges and Clearing Limited (“HKEx”) and China Securities Depository and Clearing Corporation Limited (“CSDS”) launched a Symposium under the theme of “Shenzhen-Hong Kong Stock Connect One Year Anniversary: A New Chapter on Capital Market Internationalization” on 2nd, December . The vice president of China Securities Regulatory Commission (“CSRC”) Fang Haixing attended the meeting and gave an important speech. Responsible officers from CSRC, Security and Futures Commission (‘SFC’), SZSE, HKEx, CSDS as well as multiple representatives of market at home and abroad also participated in the anniversary.
The vice president of CSRC Fang Haixing expressed his congratulations towards the smooth operation of Shenzhen-Hong Kong Stock Connect and gave affirmation to both sides on the achievements made last year. He emphasized that the opening of Shenzhen-Hong Kong Stock Connect was a momentous decision made under the leadership of Xi Jinping as the core the CPC central committee to unswervingly promote the opening up of China’s financial markets, a brave innovation in connecting markets before the complete opening up of capital programs in Chin’s capital market and a major practice in the opening up of financial field for socialism with Chinese characteristics. The reproducible and promotable interconnection mechanism is a successful example in the renovation and opening up of China’s capital market, providing Chinese wisdom and resolution for the innovative development of international capital market. The successful launch and smooth operation raised the attraction of A-share market towards overseas investors significantly and boosting A-share becoming a MSCI benchmark index. CSRC will continue to perfect Shenzhen-Hong Kong Stock Connect mechanism to provide more asset risk management tools for domestics and overseas investors and unswervingly promote the opening up and renovation of the capital market.
The general manger of SZSE Wang Jianjun gave an introduction on the overall situation and achievements of the one year operation of Shenzhen-Hong Kong Stock Connect. The operation has been productive in reflecting the market characteristics and consolidating market infrastructure continuously ever since the opening of Shenzhen-Hong Kong Stock Connect. The expansion of opening up and cross-border cooperation increased the convenience of the asset allocation for investors both in Shenzhen and Hong Kong, raised the level of standard operation of listed companies in Shenzhen, lead the internationalization of securities factory and left a positive and profound effect on China’s capital market renovation and development. He called for innovation in financial service and tools by learning from the successful experience of Shenzhen-Hong Kong Stock Connect and enabling the collaboration of securities and financial industries. SZSE will promote ETF to enter the securities scope of Shenzhen-Hong Kong Stock Connect mechanism, optimizing the arrangement of trading calendar and mechanism of cross-border capital service as well as overseas investing service system to build a world-leading innovation capital center.
Gao Xiaozhen, the mainland affair executive of SFC said that the Shenzhen-Hong Kong Stock Connect mechanism further supported the integration of Hong Kong in mainland economic development and SFC will strengthen collaboration on supervision with CSRC to lay a solid foundation for a deepening Shenzhen-Hong Kong Stock Connect mechanism. Chief Executive Officer of HKEx indicated that the Shenzhen-Hong Kong Stock Connect mechanism combined China’s conditions with world development, provided a new mode for the capital market in support of “the Belt and Road” and offered a new method for global allocation of national wealth. Zhou Ming, the president of CSDS expressed the willing of deepening interconnection with overseas depository and clearing infrastructures to provide more and better support for the long and healthy development of the capital market.
Representatives of market at home and abroad fully acknowledged the important role Shenzhen-Hong Kong Stock Connect has played in the internationalization of capital market. They discussed the challenges and opportunities of security operating institutions under the new circumstances of opening up and made relative suggestions on perfecting Shenzhen-Hong Kong Stock Connect mechanism as well as raising the core competence of securities industry.
Participants all agreed to earnestly complement the decisions and arrangements of the Central Committee and State Council on the basis of learning and understanding the spirit of the 19th National Party Congress and the National Finance Conference, stick to the general principle of making progress while maintaining stability, concentrate on the national strategy and real economy development, promote the solid optimization of Shenzhen-Hong Kong Stock Connect mechanism and the formation of cross-border capital to provide service for the new pattern of opening up.
