Published : 2024-11-17
On November 17, 2014, the first stock market connectivity mechanism between Mainland China and Hong Kong, "Shanghai-Hong Kong Stock Connect" (滬港通), was officially launched.
The Shanghai-Hong Kong Stock Connect includes two main parts: Shanghai Stock Connect and Hong Kong Stock Connect.
Investors from both regions can entrust members of the Shanghai Stock Exchange or participants of the Hong Kong Exchanges and Clearing Limited to buy and sell stocks and stock ETFs listed on the other party's exchange through securities trading service companies established at the other party's location.
Shanghai-Hong Kong Stock Connect can be traced back to the "Through Train" (港股直通車), which was suspended in 2007.
On April 10, 2014, Chinese Premier Li Keqiang mentioned in his speech at the Boao Forum that China would focus on promoting a new round of high-standard opening up and actively create conditions to establish a trading connectivity mechanism between the Shanghai and Hong Kong stock markets.
That afternoon, the China Securities Regulatory Commission and the Hong Kong Securities and Futures Commission issued a joint announcement to decide in principle to approve the launch of Shanghai-Hong Kong Stock Connect.
At the initial stage, Shanghai-Hong Kong Stock Connect implemented a total management on the cross-border investment quota in CNY.
The total quota for Hong Kong Stock Connect was 250 billion CNY, with a daily quota of 10.5 billion CNY and 268 stock targets; the total quota for Shanghai Stock Connect was 300 billion CNY, with a daily quota of 13 billion CNY and 568 stock targets.
