Shenzhen and Hong Kong Stock Connect and Shanghai-Hong Kong Stock Connect 

This announcement is made by Hong Kong Exchanges and Clearing Limited (“HKEX”) pursuant to the provisions under Part XIVA of the Securities and Futures Ordinance and Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

HKEX notes that in a joint announcement of today (“Joint Announcement” www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=16PR80), the China Securities Regulatory Commission and the Securities and Futures Commission approved in principle the establishment of mutual stock market access between Shenzhen and Hong Kong (“Shenzhen-Hong Kong Stock Connect”), and approved the immediate abolition of the existing aggregate quota under Shanghai-Hong Kong Stock Connect. We welcome the Joint Announcement and believe that Shenzhen-Hong Kong Stock Connect will further strengthen the interconnectivity between the Mainland China and Hong Kong capital markets, expand the investment choice for investors and promote the internationalisation of Renminbi.

The key features of Shenzhen-Hong Kong Stock Connect, including the shares eligible to be traded under Shenzhen-Hong Kong Stock Connect, eligible investors and daily quotas, are set out in the Joint Announcement. HKEX expects that it should take approximately four months from today to complete the technical and operational preparations for the launch of Shenzhen-Hong Kong Stock Connect.

There is no reason for HKEX to believe that Shenzhen-Hong Kong Stock Connect will not be implemented as Shenzhen-Hong Kong Stock Connect follows the existing legal, regulatory and operational framework of Shanghai-Hong Kong Stock Connect.

HKEX’s shareholders and potential investors are nonetheless reminded to exercise caution when dealing in the HKEX shares. Investors should also exercise caution when dealing in any eligible securities referred to in the Joint Announcement.

Source: HKEX

---