INTERNATIONAL: CSDC Publish Rules on the Stock Connect Between Chinese Mainland and Hong Kong

The Rules are formulated pursuant to the Securities Law and other pertinent laws and administrative regulations for the purpose of regulating the activities in relation to the stock connect between Chinese Mainland and Hong Kong, protecting investors’ legitimate rights and interests and maintaining the securities market order.

For the purpose of the Rules, stock connect between Chinese Mainland and Hong Kong means Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE) respectively set up technical links with The Stock Exchange of Hong Kong Limited (HKSE), to enable mainland and Hong Kong investors to trade the shares within the specified range listed on each other’s exchanges via local securities companies or brokers. The Stock Connect between Chinese Mainland and Hong Kong includes Shanghai-Hong Kong Stock Connect (SH-HK Stock Connect) and Shenzhen-Hong Kong Stock Connect (SZ-HK Stock Connect).

SH-HK Stock Connect is divided into HK-SH Northbound Trading and SH-HK Southbound Trading under SH-HK Stock Connect. HK-SH Northbound Trading means an investor entrusts a Hong Kong-based broker to declare to SSE (order routing) via a stock trading service company established by HKSE in Shanghai, and trade the SSE-listed stocks within the specified range of SH-HK Stock Connect.

SH-HK Southbound Trading under the SH-HK Stock Connect means an investor entrusts a Mainland-based broker to declare to HKSE (order routing) via a stock trading service company established by SSE in Hong Kong, and trade the HKSE-listed stocks within the specified range of SH-HK Stock Connect.

Please click on the above link for more information.