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Tuesday, December 05, 2017, 17:34
HK-Shenzhen connect sees turnover of US$195b in first year
By Luo Weiteng
Tuesday, December 05, 2017, 17:34 By Luo Weiteng

Since its launch on Dec 5, 2016, the Shenzhen-Hong Kong Stock Connect has operated smoothly with a steady increase in turnover and net inflow of cross-border funds. (PHOTO / VCG)

HONG KONG – Hong Kong Exchanges and Clearing, the Shenzhen Stock Exchange and China Securities Depository and Clearing co-hosted a seminar in Shenzhen over the weekend to celebrate the first anniversary of Shenzhen-Hong Kong Stock Connect.

Shenzhen-Hong Kong Stock Connect is an integral part of our mutual market access program that is opening up a new universe of investment opportunities for mainland, Hong Kong and international investors. 

Charles Li Xiaojia, Chief Executive, HKEx

Since its official launch on Dec 5, 2017, Shenzhen-Hong Kong Stock Connect – the second cross-border stock trading link between the Chinese mainland and Hong Kong, operating alongside Shanghai-Hong Kong Stock Connect – has operated smoothly with a steady increase in turnover and net inflow of cross-border funds.

READ MROE: Shenzhen-Hong Kong Stock Connect kicks off

As of December 1 this year, southbound turnover was HK$475.9 billion (402.6 billion yuan), bringing a net capital inflow of HK$111.5 billion into the Hong Kong market. Meanwhile, northbound turnover reached 875.3 billion yuan (HK$1.03 trillion), bringing a net capital inflow of 148.5 billion yuan into the Shenzhen stock market.

The success of the cross-border stock “through train” has made the A-share market significantly more attractive to overseas investors and contributed to inclusion of A shares into the Morgan Stanley Capital International benchmark index, said Fang Xinghai, vice-chairman of CSDC.

SZSE President Wang Jianjun believed stock connect has facilitated global asset allocation for investors in the mainland and Hong Kong, and improved operational and financial standards for companies listed on the Shenzhen Stock Exchange.

The cross-border stock trading platform has also promoted the internationalization of capital markets in the mainland and has had a profound positive impact on the country’s reform and development, he added.

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“Shenzhen-Hong Kong Stock Connect is an integral part of our mutual market access program that is opening up a new universe of investment opportunities for mainland, Hong Kong and international investors,” HKEx Chief Executive Charles Li Xiaojia said. 

In this Dec 5, 2016 photo, then Hong Kong chief executive Leung Chun-ying, second from right, and chairman of the Hong Kong Exchanges Chow Chung-kong, second from left, ring the opening bell at the launch ceremony of the Shenzhen-Hong Kong Stock Connect at the Exchange Exhibition Hall in Exchange Square, Central, Hong Kong. (ROY LIU / CHINA DAILY)

“The program has been successful in achieving the maximum benefits of a free and open trading market for the mainland with minimum costs and inconvenience. At the same time, Hong Kong has also secured significant strategic benefits by consolidating its position as an international market,” Li noted.

The Hong Kong stock-market operator is looking to work closely with mainland counterparts and regulatory authorities to add more products such as exchange traded funds and bonds to the schemes, Li added.

Wang concurred with Li, saying the next step for the Shenzhen bourse is to promote the inclusion of ETFs in the scheme, optimize holiday trading arrangements and continuously improve cross-border capital services. 

sophia@chinadailyhk.com

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