Stock connect between Shanghai and Hong Kong moves ahead

ConnectingThe programme that links the stock exchanges of Shanghai and Hong Kong is set to launch later this month, opening up another channel for investors to trade Chinese A-shares.

The Shanghai-Hong Kong Stock Connect programme, or "through train" as it is referred to locally, was originally scheduled to launch last month. Regulators in Hong Kong announced this morning that the "through train" will pull in on November 17.

"The launch of Shanghai-Hong Kong Stock Connect will be a very significant breakthrough in the opening of China's capital markets for both domestic and international investors as well as a landmark in the internationalisation of renminbi," Charles Li, chief executive of the Hong Kong Exchanges and Clearing says.

"This development is also a landmark in further consolidating [Hong Kong Exchanges and Clearing] as a global exchange leader in Asia, not as a competitor of, but in close collaboration and partnership with Chinese domestic securities and futures exchanges."

The list of participants and stocks eligible for trading have also been published.

Qiumei Yang, chief executive officer, ICI Global Asia Pacific, says the announcement of the launch date for the stock connect programme is an important initiative that will benefit investors and funds around the world.

"This is a major step made by China to further open up its capital market and integrate with the global financial world," Yang adds. "We warmly welcome the initiative and applaud the regulators for their efforts and commitment."

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