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Landmark Shanghai-Hong Kong stock connect launched

2014-11-17 10:46:46Source:XinhuaAuthor:

The landmark Shanghai-Hong Kong Stock Connect, which is aimed at linking up the stock exchanges of Hong Kong and Shanghai, was officially launched on Monday.

Hong Kong stocks moved up 225.68 points, or 0.94 percent, to open at 24,313.06.

Hong Kong's Chief Executive C Y Leung welcomed the launch of the pilot program to provide mutual trading access between the Shanghai and Hong Kong stock markets.

Leung said the program will increase the competitiveness of both stock markets and enhance Hong Kong's status as a major offshore RMB trading hub.

"It is a breakthrough in the opening up of China's financial markets and an important milestone in the development of Hong Kong as a unique gateway between the mainland and international investors," Chairman of the Hong Kong Exchanges and Clearing Limited C K Chow said at the launching ceremony.

On the Southbound link, institutional investors and individuals with over 500,000 yuan in their brokerage accounts may trade Hong Kong shares through a broker on the Shanghai stock market; while heading Northbound, Hong Kong investors and international investors with Hong Kong brokerage accounts may trade shares listed on the Shanghai stock market.

The pilot scheme comes with limitations on the total RMB value of shares that can be traded through the exchanges. For the Northbound link, there is an aggregate cap of 300 billion yuan and 13 billion yuan daily. The aggregate Southbound trading quota is 250 billion yuan and 10.5 billion yuan daily.