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On June 28, CBRC and SFC issued a Joint Announcement, stating that ETFs will be officially incorporated into the Mainland-Hong Kong Stock Connect Mechanism on 4 July 2022. This is a landmark achievement in the continuous improvement of the Connect Mechanism and another important measure to concretely advance the comprehensive deepening of capital market reform, promote high-quality opening-up and serve the building of the Guangdong-Hong Kong-Macao Greater Bay Area.
In the early stage, SZSE released relevant business rules to set forth the conditions for ETF inclusion, adjustment mechanism, trading arrangements and other matters. Meanwhile, SZSE worked closely with relevant parties to organize market participants to make preparations, conduct technical system tests together with members, and urge the members to step up efforts in preventing business risks and earnestly provide education services for investors. At present, the preparatory work for business, technology and market has been basically completed.
Today, SZSE and SEHK unveiled the first batch of ETFs, which will be officially brought under the Shenzhen-Hong Kong Stock Connect on July 4th. In particular, a total of 30 ETFs under the northbound Shenzhen Connect cover broad-base core products such as the ChiNext ETFs and CSI 300 ETF, and themed products in advanced manufacturing, digital economy, green and low-carbon development and other representative industries, including biotechnology ETFs, chip ETFs and carbon neutrality ETFs. Four ETFs in total under the southbound Hong Kong Connect cover stock ETFs such as Tracker Fund of Hong Kong. Market participants can view the list of ETFs under the Shenzhen-Hong Kong Connect on the websites of SZSE and SEHK.
Next, SZSE will, in accordance with the unified plans of CSRC, continue to make solid preparations along with other parties to ensure smooth and stable incorporation of ETFs into the Connect Mechanism, further promote the coordinated development of the Mainland and Hong Kong capital markets and boost the high-quality development of Guangdong-Hong Kong-Macao Greater Bay Area.
