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business & economy

Approval given for Shenzhen-
Hong Kong Stock Connect

The Shenzhen-Hong Kong Stock Connect will reinforce Hong Kong's position as an international finance center.

The Hong Kong Special Administrative Region Government and the Hong Kong Monetary Authority (HKMA) welcomed the August 16 approval of the implementation of the Shenzhen-Hong Kong Stock Connect.

Hong Kong Financial Secretary John Tsang said the equity link is beneficial to both sides as it will draw international investors to the mainland China markets through Hong Kong, reinforcing the city’s position as an international financial center. The initiative will also facilitate the opening up of China’s financial markets and promote the renminbi’s internationalization.

HKMA CEO Norman Chan also welcomed the announcement of the Shenzhen-Hong Kong Stock Connect’s imminent launch, noting that it will provide an additional channel for mutual access to stock markets in both places. He added that it will further consolidate Hong Kong’s development as the global offshore renminbi trading hub.

Preparation for the formal launch is expected to take four months to complete. There will be no aggregate quota under the new link, and the aggregate quota under the Shanghai-Hong Kong Stock Connect was abolished as of August 16.

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