Friday January 20 2023
News Source: Global Exchanges
Focus: General - Global Exchanges
Country: Hong Kong
On 19th January 2023, the Hong Kong Securities Clearing Company Limited (HKEX) announced update on the expansion of eligible stocks under stock connect.
Eligibility criteria and review mechanism for eligible stocks for Northbound trading
Details of the eligibility criteria and review mechanism for Northbound stocks for the expansion are set out in Appendix 1 and Appendix 2 respectively
The inclusion of SSE/ SZSE listed stock(s) with differentiated voting rights (DVR stock) will be subject to additional eligibility criteria for Northbound trading. The existing arrangements, including but not limited to trading arrangements, settlement arrangements, fees and levies for eligible Northbound stocks, shall also apply to the eligible DVR stock(s) for Northbound trading
Eligible stocks for Southbound trading
The scope of eligible stocks for Southbound trading will be expanded to include stocks of international companies that are primary-listed in Hong Kong, and are 1) constituent stocks of the Hang Seng Composite LargeCap Index or Hang Seng Composite MidCap Index, or 2) constituent stocks of the Hang Seng Composite SmallCap Index (HSSI) with a market capitalization of HK$5 billion or above.
It follows that the scope of eligible stocks for Southbound trading under Shanghai Connect will be expanded to include constituent stocks of the HSSI with a market capitalization of HK$5 billion or above, which will be aligned with the existing scope of eligible stocks for Southbound trading under Shenzhen Connect.
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