Hong Kong Exchange Expands Eligible ETFs under Stock Connect Program Effective 22nd July 2024, Updated List of ETFs for Northbound & Southbound Trading to be Announced on 12th July 2024
18th June 2024 | Hong Kong
Hong Kong Exchange (HKEX) has announced the expansion of eligible ETFs (Exchange-traded funds) under the Stock Connect program (effective 25/7/24), with the updated list of ETFs for Northbound & Southbound Trading to be announced on 12th July 2024. HKEX (14/6/24): “Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce today (Friday) that the expansion of eligible exchange-traded funds (ETFs) under Stock Connect will take effect on 22 July 2024. This follows the announcement of the new eligibility criteria by HKEX, Shanghai Stock Exchange and Shenzhen Stock Exchange on 19 April 2024. This expansion will further enhance the investment choices for Stock Connect investors, enabling them to diversify their assets across both Hong Kong and Mainland China markets in an efficient and cost-effective manner. Based on the new criteria, an updated list of eligible ETFs for Northbound and Southbound trading under Stock Connect will be announced respectively by HKEX and the Mainland exchanges on 12 July 2024. The data cut-off date for determining the eligibility of ETFs under the new criteria is 17 June 2024. ETFs that satisfy the new criteria on this date will be accepted as eligible for trading under Stock Connect. More details about this expansion can be found in the circular published by HKEX today. Earlier in 2024 April, the Hong Kong, Shanghai & Shenzhen Stock Exchanges announced to adjust Stock Connect market data dissemination including real-time data availability for Southbound Trading & Northbound Trading. More info below:
“ Hong Kong Exchange Expands Eligible ETFs under Stock Connect Program Effective 22nd July 2024, Updated List of ETFs for Northbound & Southbound Trading to be Announced on 12th July 2024 “
Hong Kong, Shanghai & Shenzhen Stock Exchanges Adjust Stock Connect Market Data Dissemination Including Real-Time Data Availability for Southbound & Northbound Trading
17th April 2024 – The Hong Kong, Shanghai & Shenzhen Stock Exchanges have announced to adjust Stock Connect market data dissemination including real-time data availability for Southbound Trading & Northbound Trading. Announcement (12/4/24): “Hong Kong Exchanges and Clearing Limited (HKEX), the Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange (SZSE), announced today (Friday) planned adjustments to market data dissemination for Southbound trading and Northbound trading under the Stock Connect programme. Northbound Stock Connect (following the market practice of Mainland China’s A-share market) – 1) Real-time available daily quota balance will be shown when it falls below 30%; otherwise indicated as “Available”. 2) Real-time buy, sell and total turnover will not be available; historical daily/ monthly total market turnover, number of trades, ETF turnover, and turnover of the top 10 most actively traded stocks will be shown. 3) Real-time available short selling balance for individual stock will be shown when it falls below 300,000 shares; otherwise indicated as “Available”. 4) Shareholding by CCASS Shareholding Search and Stock Connect Northbound Shareholdings Search will be available quarterly on the 5th Northbound trading day following the quarter end. Southbound Stock Connect (following Hong Kong market practice): 1) Real-time available daily quota balance will be shown when it falls below 30%; otherwise indicated as “Available”. 2) Dissemination of other data will remain unchanged. In 2023 October, Hong Kong Exchange (HKEX) launched the settlement acceleration platform HKEX Synapse for Northbound Stock Connect participants on 9th October 2023, providing international investors connecting to Mainland China stock markets with better post-trade operations, real-time data & reduced settlement risks.
Hong Kong, Shanghai & Shenzhen Stock Exchanges Adjust Stock Connect Market Data Dissemination Including Real-Time Data Availability for Southbound & Northbound Trading
12th April 2024 – Hong Kong Exchanges and Clearing Limited (HKEX), the Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange (SZSE), announced today (Friday) planned adjustments to market data dissemination for Southbound trading and Northbound trading under the Stock Connect programme. The adjustments are part of a commitment to the continued development of the mutual market access programme, under the guidance of the China Securities Regulatory Commission (CSRC) and Hong Kong’s Securities and Futures Commission (SFC). The adjustments, in line with the Stock Connect’s “home market principle”, will be implemented to ensure that market data dissemination for Southbound trading and Northbound trading aligns with the relevant data disclosure practices on the Hong Kong market and Mainland China’s A-share market, respectively.
The arrangements after the adjustments are set out below:
Southbound Stock Connect (following Hong Kong market practice):
- Real-time available daily quota balance will be shown when it falls below 30%; otherwise indicated as “Available”.
- Dissemination of other data will remain unchanged.
Northbound Stock Connect (following the market practice of Mainland China’s A-share market):
- Real-time available daily quota balance will be shown when it falls below 30%; otherwise indicated as “Available”.
- Real-time buy, sell and total turnover will not be available; historical daily/ monthly total market turnover, number of trades, ETF turnover, and turnover of the top 10 most actively traded stocks will be shown.
- Real-time available short selling balance for individual stock will be shown when it falls below 300,000 shares; otherwise indicated as “Available”.
- Shareholding by CCASS Shareholding Search and Stock Connect Northbound Shareholdings Search will be available quarterly on the 5th Northbound trading day following the quarter end.
For more details on the Northbound adjustments, please refer to the Q&As on the websites of the SSE and SZSE. To ensure that all market participants have adequate time for preparation, the adjustments will be carried out in two stages. In the first stage, approximately one month from the date of this announcement, the real-time market data dissemination adjustments for Northbound trading will be made. In the second phase, approximately four months from the date of this announcement, the remaining adjustments will be implemented. HKEX, together with the SSE and SZSE, and under the guidance of the CSRC and SFC, remains fully committed to the further enhancement of Stock Connect, supporting the development of both the Hong Kong and Mainland China markets.
About HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is a publicly-traded company (HKEX Stock Code: 388) and one of the world’s leading global exchange groups, offering a range of equity, derivative, commodity, fixed income and other financial markets, products and services, including the London Metal Exchange. As a superconnector and gateway between East and West, HKEX facilitates the two-way flow of capital, ideas and dialogue between China and the rest of the world, through its pioneering Connect schemes, increasingly diversified product ecosystem and its deep, liquid and international markets. HKEX is a purpose-led organisation which, across its business and through the work of HKEX Foundation, seeks to connect, promote and progress its markets and the communities it supports for the prosperity of all.
Hong Kong Exchange Launches Settlement Acceleration Platform HKEX Synapse for Northbound Stock Connect Participants on 9th October 2023, Provides International Investors Connecting to Mainland China Stock Markets with Better Post-Trade Operations, Real-Time Data & Reduced Settlement Risks
5th October 2023 – The Hong Kong Exchange (HKEX) will be launching settlement acceleration platform HKEX Synapse for Northbound Stock Connect participants on 9th October 2023, providing international investors connecting to Mainland China stock markets with better post-trade operations, real-time data & reduced settlement risks. HKEX: “Synapse is the latest enhancement to Stock Connect, the unique mutual market access programme that connects Mainland Chinese markets with those in Hong Kong. Synapse will launch on 9 October 2023, and will deploy DAML smart contracts to standardise and streamline post-trade workflows, enhancing operational efficiencies and transparency whilst reducing settlement risks. Synapse is part of HKEX’s ongoing commitment to the development of Stock Connect, the efficient, accessible and cost-effective channel for investors participating in capital markets in Mainland China and Hong Kong. Other recent enhancements to Stock Connect include the addition of up to 10 Stock Connect trading days per year, as well as the inclusion of more than 1,000 additional stocks listed in Mainland China and made accessible to international investors via Northbound Stock Connect. HKEX Synapse eliminates sequential processes, offering real-time visibility and insights into the settlement process for all market participants. Asset managers, brokers, custodians and clearing participants will benefit from real-time data synchronisation and improved scalability, helping them to handle the growing volume of trades through Northbound Stock Connect. Average daily turnover of Northbound Stock Connect totalled RMB109.3 billion in the first half of 2023, up 5 per cent from a year earlier, and a 50 per cent increase from 2020 levels. Available as an optional service, HKEX Synapse will support institutional investors participating in Northbound Stock Connect to better manage their post-trade operations across different time zones, in particular with regard to adhering to the Mainland securities market’s T+0 settlement cycle.” HKEX Synapse are available on the designated Synapse webpage on the HKEX website. More info below:
HKEX Group Head of Emerging Business & FIC, Glenda So: “We are delighted to launch HKEX Synapse, a major enhancement to our Stock Connect infrastructure that will support the next phase of growth for international participation in Mainland China’s equity markets. This technology-empowered platform will not only improve post-trade efficiencies, but will, over time, build a better, stronger ecosystem, supporting both market growth and investor growth strategies. We are very proud to be introducing Synapse to our market and we look forward to continuing to embrace new technologies that benefit our markets and our customers in the future.”
Hong Kong Exchange Launches Settlement Acceleration Platform HKEX Synapse for Northbound Stock Connect Participants on 9th October 2023
4th October 2023 – Hong Kong Exchanges and Clearing Limited (HKEX) is today (Wednesday) pleased to announce the launch of HKEX Synapse, a new integrated settlement acceleration platform that utilises the latest technology to deliver greater market efficiency and transparency. Synapse is the latest enhancement to Stock Connect, the unique mutual market access programme that connects Mainland Chinese markets with those in Hong Kong. Synapse will launch on 9 October 2023, and will deploy DAML smart contracts to standardise and streamline post-trade workflows, enhancing operational efficiencies and transparency whilst reducing settlement risks.
Synapse is part of HKEX’s ongoing commitment to the development of Stock Connect, the efficient, accessible and cost-effective channel for investors participating in capital markets in Mainland China and Hong Kong. Other recent enhancements to Stock Connect include the addition of up to 10 Stock Connect trading days per year, as well as the inclusion of more than 1,000 additional stocks listed in Mainland China and made accessible to international investors via Northbound Stock Connect. HKEX Synapse eliminates sequential processes, offering real-time visibility and insights into the settlement process for all market participants. Asset managers, brokers, custodians and clearing participants will benefit from real-time data synchronisation and improved scalability, helping them to handle the growing volume of trades through Northbound Stock Connect. Average daily turnover of Northbound Stock Connect totalled RMB109.3 billion in the first half of 2023, up 5 per cent from a year earlier, and a 50 per cent increase from 2020 levels.
Available as an optional service, HKEX Synapse will support institutional investors participating in Northbound Stock Connect to better manage their post-trade operations across different time zones, in particular with regard to adhering to the Mainland securities market’s T+0 settlement cycle. HKEX Synapse will be linked with The Depository Trust & Clearing Corporation (DTCC) through its Institutional Trade Processing (ITP) service. With this integration, global investors and HKEX participants will benefit from the central matching of cross-border transactions using DTCC’s CTM service, which will automatically generate and send settlement instructions to the Synapse platform, streamlining the trade confirmation and settlement notification process. Other details of HKEX Synapse are available on the designated Synapse webpage on the HKEX website.
About HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is a publicly-traded company (HKEX Stock Code: 388) and one of the world’s leading global exchange groups, offering a range of equity, derivative, commodity, fixed income and other financial markets, products and services, including the London Metal Exchange. As a superconnector and gateway between East and West, HKEX facilitates the two-way flow of capital, ideas and dialogue between China and the rest of the world, through its pioneering Connect schemes, increasingly diversified product ecosystem and its deep, liquid and international markets. HKEX is a purpose-led organisation which, across its business and through the work of HKEX Foundation, seeks to connect, promote and progress its markets and the communities it supports for the prosperity of all. www.hkexgroup.com
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