The stock exchanges of Hong Kong, Shanghai and Shenzhen have reached an agreement to add ETFs to the Stock Connect scheme.
The scheme was launched in 2014 to create a link between the equities markets in Hong Kong and the Chinese mainland. The Shenzhen Stock Exchange was added in 2016 and a similar scheme, Bond Connect, was launched the following year
According to a statement from the Shanghai Stock Exchange, the business and technical preparations needed to include ETFs are under way and should be completed within six months.
“As a key enhancement of Stock Connect, the inclusion of ETFs will provide investors with more options by broadening the existing Connect product ecosystem as well as support the continued development of both markets,” stated the Hong Kong Exchanges and Clearing Ltd.
The move follows the recently announcement that the Shanghai-London stock connect scheme will be extended to include exchanges in Shenzhen, Switzerland and Germany.
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