Hong Kong Exchanges and Clearing (0388.HK) said on Friday the expansion of eligible shares under its Stock Connect programme, which enables shares listed in the country to be included in Southbound trading, would take effect from March 13. Stock Connect is a mutual market access programme through which investors in mainland China and Hong Kong can trade and settle shares listed on the other market through the stock exchanges and clearing houses in their home market
(Updates with more details and context)
March 3 (Reuters) - Hong Kong Exchanges and Clearing (0388.HK) said on Friday the expansion of eligible shares under its Stock Connect programme, which enables shares listed in the country to be included in Southbound trading, would take effect from March 13.
Stock Connect is a mutual market access programme through which investors in mainland China and Hong Kong can trade and settle shares listed on the other market through the stock exchanges and clearing houses in their home market.
The Hong Kong bourse had earlier reached an agreement with the Shanghai and Shenzen exchanges, and the China Securities Depository and Clearing Corporation Limited to expand the scope of eligible stocks under Stock Connect.
As part of the expansion, eligible A-listed shares in the Shanghai Stock Exchange and the Shenzhen Composite Index that meet certain requirements will be included in Northbound trading, referring to the trading of mainland stocks from the Hong Kong bourse.
These measures are aimed at helping a growing number of Chinese firms listed in the United States to conduct listings in Hong Kong, while they delist from the U.S. markets.
”…we continue to work with our stakeholders to deliver a host of other important initiatives that will further enhance the attractiveness of both Hong Kong’s and Mainland China’s capital markets,” HKEX Chief Executive Nicolas Aguzin said.