Hong Kong SFC Sets Conditions for Intermediaries to Distribute Research Reports of Eligible China Mainland ETFs under Stock Connect in Hong Kong, Current Arrangement Allows China Mainland Securities Companies to Distribute Research Reports of Eligible Hong Kong Stocks & ETFs in China
12th September 2024 | Hong Kong
The Hong Kong Securities & Futures Commission (SFC) has issued a circular setting conditions for intermediaries to distribute research reports of eligible China Mainland ETFs (Exchange-Traded Funds) under Stock Connect in Hong Kong. The current arrangement allows China Mainland securities companies to distribute research reports of eligible Hong Kong stocks & ETFs in China. Hong Kong SFC (9/9/24): “The Securities and Futures Commission (SFC) issued a circular today to set out the conditions that allow intermediaries to distribute research reports of eligible Mainland exchange-traded funds (ETFs) under Stock Connect in Hong Kong. Since the inclusion of ETFs under Stock Connect (ETF Connect) in July 2022, the scheme has been operating smoothly and highly welcomed by investors in both markets. Its expansion also took effect in July 2024. In view of the orderly expansion of Stock Connect and the increasing diversity of eligible securities under the scheme, the China Securities Regulatory Commission (CSRC) has clarified that the existing relevant requirements for Mainland securities companies to forward research reports of eligible Hong Kong stocks under Stock Connect on the Mainland can apply to research reports of eligible Hong Kong ETFs under Stock Connect (Note 1). Reciprocally, the SFC has also set out in its circular issued today the relevant requirements for intermediaries to distribute research reports of eligible Mainland ETFs under Stock Connect in Hong Kong (Note 2). The arrangements aim to enhance Mainland and Hong Kong investors’ understanding of the products in each other’s market, as well as facilitate trading and liquidity in both markets.”
“ Hong Kong SFC Sets Conditions for Intermediaries to Distribute Research Reports of Eligible China Mainland ETFs under Stock Connect in Hong Kong, Current Arrangement Allows China Mainland Securities Companies to Distribute Research Reports of Eligible Hong Kong Stocks & ETFs in China “
Christina Choi, the SFC’s Executive Director of Investment Products: “Since the launch of ETF Connect, both Mainland and Hong Kong industry participants have been exploring ways to enhance investors’ understanding of their products across the boundary. The latest arrangement will facilitate the circulation of product information with a clear, compliant and professional method.”
Notes:
- On 20 March 2020, the CSRC issued the amended Interim Provisions of the CSRC on Securities Fund Business Institutions’ Use of Securities Investment Consulting Services Provided by Hong Kong Institutions, allowing Mainland securities companies to forward research reports issued by Hong Kong intermediaries licensed or registered for Type 4 regulated activity regarding eligible Hong Kong stocks under Stock Connect to their Mainland clients in accordance with the provisions. On 27 May 2022, the two regulators issued a joint announcement on ETF Connect, which provides that other issues not mentioned in that joint announcement shall be dealt with in accordance with the relevant requirements set out in the joint announcements on Stock Connect.
- Please refer to the circular issued on 9 September 2024.
Hong Kong SFC Sets Conditions for Intermediaries to Distribute Research Reports of Eligible China Mainland ETFs under Stock Connect in Hong Kong, Current Arrangement Allows China Mainland Securities Companies to Distribute Research Reports of Eligible Hong Kong Stocks & ETFs in China
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