With rolling waves and steps of solidarity, on the occasion marking the 25th anniversary of Hong Kong's return to the motherland, the inclusion of ETF in Stock Connect was officially launched on July 4. A new level was marked for the capital market connectivity between the mainland and Hong Kong. Shenzhen Stock Exchange (SZSE), joined by Shanghai Stock Exchange (SSE), Hong Kong Exchanges and Clearing Limited (HKEX) and China Securities Depository and Clearing Corporation Limited (CSDC), held the “Launch Ceremony of Inclusion of ETF in Stock Connect” virtually. Relevant officials from local governments, exchanges, clearing companies attended the ceremony, and representatives from market entities and investors watched the livestreamed ceremony to witness the historic moment.

At the launch ceremony, Ms. Sha Yan, SZSE president & CEO said that under the guidance of the mainland and Hong Kong securities regulators, SZSE, together with SSE, HKEX and CSDC, included ETF in the Stock Connect scheme, taking new steps to facilitate the institutional two-way opening-up of the capital market. This is an important measure to implement the national strategic deployment of opening-up and support Hong Kong in reinforcing and enhancing its status as an international financial center. It is also another landmark achievement in deepening the Stock Connect mechanism and better serving the development of Guangdong-Hong Kong-Macao Greater Bay Area. It is conducive to diversifying cross-border investment products, providing more investment convenience and opportunities for domestic and overseas investors and promoting the sustainable, stable and sound development of the mainland and Hong Kong markets.

Mr. Cai Jianchun, President of SSE, said that the successful inclusion of ETF in Stock Connect scheme is another major initiative to deepen cooperation between the mainland and Hong Kong capital markets and further implement the high-level opening-up since the launch of the Stock Connect scheme. It not only facilitates cross-border investments, providing new opportunities for the high-quality development of SSE ETF market, but also help the asset managers and securities companies of the mainland and Hong Kong to further improve their management and service.

Mr. Nicolas Aguzin, HKEX Chief Executive Officer, said that the inclusion of ETF in Stock Connect scheme marks a further step in HKEx's journey to enhance market vitality, diversity and attractiveness, and will strengthen the important role of Hong Kong in connecting China with the world. Moreover, it reflects HKEX’s determination to vigorously develop the ETF market and strive to cement Hong Kong's position as an ETF hub in Asia.

Mr. Kong Qingwen, General Manager of CSDC, said that CSDC unified the ETF settlement model in Shanghai and Shenzhen markets in 2020, laying a solid foundation for eligible ETFs to be included in Stock Connect. Under the overall arrangement of the mainland and Hong Kong securities regulators and with close cooperation and joint efforts of all parties, the successful launch ETF inclusion in Stock Connect heralds a new chapter for the Stock Connect scheme between the mainland and Hong Kong.

SZSE will resolutely carry out the strategic deployment of the CPC Central Committee and the State Council on expanding financial opening-up. Under the leadership of the CSRC, SZSE will give full play to the geographical advantages of Shenzhen and Hong Kong, continue to strengthen communication and cooperation with HKEX and other relevant parties, enhance the supervisory mechanism arrangement of the Stock Connect scheme, improve its cross-border market supervision and service capabilities, and help promote win-win cooperation with the Hong Kong market in more fields, at higher levels and on a larger scale so as to inject new momentum into the high-quality development of Guangdong-Hong Kong-Macao Greater Bay Area.