Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce it has reached an agreement with Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE) to expand the scope of eligible exchange-traded funds (ETFs) under Stock Connect.

The eligibility criteria for ETFs for both Northbound and Southbound trading, including the assets under management requirement and the index weighting requirements, will be relaxed to support the continued development of the mutual market access programme. This expansion will further enrich investment options and enable Stock Connect investors to allocate assets in both Hong Kong and Mainland China markets in an efficient and cost-effective way. Further details of the expansion can be found in the circular published by HKEX.

The three exchanges will work closely on the business and technical preparations for the expansion, which is expected to take effect approximately three months from the date of this announcement.

As the connector between China and the world, HKEX is committed to working closely with the regulators and the Mainland China exchanges to further enhance the pioneering Connect programmes, supporting the long-term sustainable development of the Hong Kong and Mainland capital markets.

Source: HKEX