CHINA: SSE Issues Business Guidelines to Clarify the Reporting Requirements for Programmed Trading

Friday July 11 2025

On 9^th July 2025, the Shanghai Stock Exchange (SSE) issued the “Guidelines for the Application of Securities Trading Rules of the Shanghai Stock Exchange No. 2 – Program Trading Report of Investors in the Shanghai Stock Connect”, which included investors in the Shanghai Stock Connect in the scope of program trading reports in accordance with the principle of consistency between domestic and foreign investment. This is an important measure for the Shanghai Stock Exchange to implement the provisions on program trading reports in the “Securities Law”, “Regulations on Program Trading Management in the Securities Market” and “Implementation Rules of Program Trading Management of the Shanghai Stock Exchange”, which will help further consolidate the foundation of program trading supervision, comprehensively grasp the situation of program trading in the Shanghai Stock Exchange, better promote the standardized development of program trading, and maintain securities trading order and market fairness.

The “Reporting Guidelines” keep the reporting requirements for investors in the Shanghai-Hong Kong Stock Connect program trading consistent with those of domestic investors as a whole, while taking into account the actual differences between the mainland and Hong Kong markets, making adaptive adjustments to some terms and reporting fields, and leaving sufficient preparation time for the market. In terms of reporting subjects, reporting is based on the Northbound Investor Identification Code (BCAN code). In terms of reporting paths, northbound investors report to Hong Kong brokers and then provide them to the SSE through the Hong Kong Stock Exchange (HKEX). In terms of reporting content and regulatory requirements, they are consistent with the overall domestic situation. For entities that fail to fulfill their reporting and change reporting obligations as required, report incomplete information, and violate relevant regulations, the SSE may request the HKEX to assist in taking corresponding regulatory measures or disciplinary sanctions. In terms of implementation time, the “Reporting Guidelines” will be officially implemented on January 12, 2026. Within 3 months after the official implementation, existing investors should complete the report.

In the next step, under the overall coordination of the China Securities Regulatory Commission (CSRC), the SSE will further strengthen cross-border regulatory cooperation with the Hong Kong Stock Exchange, carry out training in a timely manner, interpret the rules well, and ensure the smooth implementation of the “Reporting Guidelines”.

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