HONG KONG: HKEX Publishes Update on Expansion of Eligible Stocks Under Stock Connect

Friday January 20 2023

On 19^th 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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