Definition & Development

Shenzhen-Hong Kong Stock Connect is a mutual stock market access mechanism between the Mainland and Hong Kong under which Shenzhen Stock Exchange (SZSE) and the Stock Exchange of Hong Kong Limited (SEHK) have established technical connectivity to enable investors in the Mainland and Hong Kong to trade eligible shares listed on the other’s market through their local securities companies or brokers.

Shenzhen Connect refers to that investors appoint Hong Kong brokers to trade eligible shares under Shenzhen-Hong Kong Stock Connect listed on SZSE by sending orders (order routing) to SZSE through a securities trading service company to be established by SEHK in Shenzhen.

Hong Kong Connect under Shenzhen-Hong Kong Stock Connect refers to that investors appoint the Mainland securities companies to trade eligible shares under Shenzhen-Hong Kong Stock Connect listed on SEHK by sending orders (order routing) to SEHK through a securities trading service company to be established by SZSE in Hong Kong.

Milestones:

May 2016, SZSE and CSDC set up the Leadership Team for Shenzhen-Hong Kong Stock Connect.

August 16, 2016, with the approval of the State Council, the CSRC and the SFC issued the Joint Announcement of the China Securities Regulatory Commission and the Securities and Futures Commission.  

August 22, 2016, SZSE and CSDC jointly issued a circular on the initiation of business and technical preparatory work for Shenzhen-Hong Kong Stock Connect.

August 26, 2016, SZSE started soliciting public opinions on the draft rules for Shenzhen-Hong Kong Stock Connect.

August 31, 2016, SZSE and CSDC Shenzhen Branch jointly provided business and technical training on Shenzhen-Hong Kong Stock Connect.

TBD…