08.14.2023

HKEX Welcomes Stock Connect Enhancements

08.14.2023
HKEX Welcomes Stock Connect Enhancements

Hong Kong Exchanges and Clearing Limited (HKEX) welcomes the joint announcement by Hong Kong’s Securities and Futures Commission and the China Securities Regulatory Commission on the proposed introduction of block trading under Stock Connect, the landmark mutual market access programme between Hong Kong and Mainland China.

When the enhancements are implemented, offshore investors will be able to conduct block trades via Northbound trading under Stock Connect, on both the Shanghai and Shenzhen stock exchanges; and investors from Mainland China will be able to conduct manual trades via Southbound trading under Stock Connect on Hong Kong’s stock market.

Manual trades in Hong Kong’s equities market and block trading on Mainland China’s A-share market are important trading mechanisms that allow investors to conduct negotiated transactions.

HKEX Co-Chief Operating Officer and Head of Equities Wilfred Yiu said: “The launch of block trading is the latest significant enhancement to the Connect franchise, providing price and execution certainty for large-sized deals that will help further enhance trading efficiency. This will support the continued growth and development of this exclusive mutual market access platform, offering more choice and more liquidity. We look forward to working closely with our partners to prepare for this rollout, as well as on other Connect-related enhancements, as we connect China and the world.”

Together with its Mainland partners, HKEX will develop an implementation proposal for the introduction of block trading and manual trades, including the relevant business, technical and regulatory arrangements.

Subject to regulatory approval, implementation details and the official launch date will be announced in due course.

Source: HKEX

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