China-Hong Kong Stock Connect to open on more days

Mar 3rd, 2023 | By | Category: ETF and Index News

Financial regulators in China and Hong Kong have jointly announced calendar enhancements for the Stock Connect programme, adding up to ten additional trading days each year.

China-Hong Kong Stock Connect opens on more trading days

Financial regulators in China and Hong Kong have added up to ten additional trading days per year to the Stock Connect programme.

The Stock Connect, which launched in November 2014, allows international investors to trade Chinese A-share securities and ETFs listed on the Shanghai and Shenzhen exchanges, known as Northbound trading, while mainland Chinese investors are similarly able to trade securities and ETFs listed on the stock exchange of Hong Kong, known as Southbound trading.

Under the Stock Connect’s current Northbound arrangements, trading is only available on a Hong Kong trading day if both Hong Kong and mainland China markets are open and banking services are available in both markets on the corresponding money settlement day, which is the following day (T+1).

As such, Northbound trading on Stock Connect has been closed on the trading day before a Hong Kong public holiday because banking services are not available in Hong Kong on public holidays.

However, under new arrangements, Northbound trading will now be available on all trading days that are mutual to Hong Kong and mainland China markets, regardless of whether there is a public holiday on the following day. Similar adjustments will also be made to the Stock Connect’s Southbound arrangements.

According to the Stock Exchange of Hong Kong, the first additional Northbound trading day will be 25 May 2023, followed by two additional Northbound trading days (20 October and 22 December 2023) for this year.

Wilfred Yiu, co-Chief Operating Officer and Head of Equities at the Stock Exchange of Hong Kong, said: “The launch of these Stock Connect trading calendar enhancements is great news for the market, providing more trading opportunities to international and mainland investors alike. We look forward to working with all our stakeholders and regulators in delivering these enhancements as we continue to build Hong Kong’s role as a global super-connector.”

Nicolas Aguzin, Chief Executive Officer at the Stock Exchange of Hong Kong, added: “The enhancements to the trading calendar will further deepen cross-border market accessibility of the Stock Connect programme, enabling Hong Kong and global investors to enjoy wider access to the mainland China markets and providing mainland investors with more opportunities to engage with our markets. We are committed to working with our regulators and business partners to enhance mutual access between the capital markets of mainland China and Hong Kong as we build on our strategy of connecting China and the world.”

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