INTERNATIONAL: HKEX Announces Amendments of Rules in Relation to North bound Trading of Stock Connect by CSRC, SSE, SZSE

Friday June 2 2023

On 2^nd June 2023, the Stock Exchange of Hong Kong (HKEX) published a circular requesting China Connect Exchange Participants (CCEPs) and Trade-through Exchange Participants (TTEPs) to note that the 1-year transitional period in relation to restricting Mainland investors from Northbound Trading under Stock Connect will end soon.

After the transitional period with effect from 24^th July 2023:

• Any BCAN with “CHN” as the country/ region of issuance (CHN BCAN) shall no longer be used for Northbound Trading. CCEPs and TTEPs shall delete all CHN BCANs for their clients who are Mainland investors. All Northbound buy orders tagged with CHN BCAN will be rejected.
• Mainland investors shall not proactively buy any China Connect Securities through Northbound Trading under Stock Connect (including subscription for right issues but excluding obtaining China Connect Securities passively as a result of certain corporate actions (such as distribution of stock dividends).
• China Connect Securities held by Mainland investors could be sold through Northbound Trading under Stock Connect by tagging the reserved values 3 for individual Mainland investors” or “4 = for institutional Mainland investors”, as the case may be. The Interface Specifications for HKEX China Connect Central Gateway Platform on HKEX website has been updated. No pre-registration will be required for using the reserved values.
• Registration of new CHN BCANs, as well as the change of the country/ region of issuance of existing BCANs to “CHN” will be rejected. The System File Interface Specification on Northbound Investor ID Model has been updated accordingly.

Click on the above link for further information