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The China Securities Regulatory Commission (CRSC) and the Securities and Futures Commission of Hong Kong (SFC) release a joint announcement today to increase the daily quota of Shanghai Stock Connect to RMB52 billion, and that of Hong Kong Stock Connect under Shanghai-Hong Kong Stock Connect to RMB42 billion, which shall come into effect from May 1, 2018. To implement the arrangement in the joint announcement, the SSE releases the "Notice on Adjusting the Daily Quota of Shanghai-Hong Kong Stock Connect" and the "Notice of Adjusting the Daily Quota of Hong Kong Stock Connect under Shanghai-Hong Kong Stock Connect" to market participants on the same day, and requires all the market participants to well arrange relevant adjustment work about the increase of daily quotas.
The two-way increase of the daily quotas about Shanghai-Hong Kong Stock Connect will better meet long-term overseas institutional investors' need of investing in A-share and maintain the safe and stable operation of the market. And it will play a positive role in the development of the bilateral capital markets, the further improvement of existing mechanisms and the steady implementation of including A shares into the MSCI index.
Shanghai-Hong Kong Stock Connect has been in smooth operation for three years since its launching on November 17, 2014, and various business lines like trading, registration and settlement, swap and corporate behaviors have been normally handled. Till March 30, 2018, the total trading volume of Shanghai-Hong Kong Stock Connect had reached RMB7.8 trillion. In particular, 795 kinds of stocks were traded through Shanghai Stock Connect (northbound), with the total trading volume of RMB4.3 trillion, and 385 kinds of stocks were traded through Hong Kong Stock Connect (southbound), with the total trading volume of RMB3.5 trillion.
Next, under the unified deployment of the CSRC, the SSE will, together with the Stock Exchange of Hong Kong Limited (SEHK), China Securities Depository & Clearing Corp., Ltd. (CSDC) and relevant parties, earnestly implement the penetrating-style trading regulation arrangement for Shanghai Stock Connect, guarantee the smooth operation of the Connectivity Mechanism and create a new situation for the opening-up of the capital market.
