Date
20 November 2017
More than 300 brokerages have signed up for a pilot program linking the Shanghai and Hong Kong stock markets. Photo: Bloomberg
More than 300 brokerages have signed up for a pilot program linking the Shanghai and Hong Kong stock markets. Photo: Bloomberg

HK, Shanghai bourse link on track for Oct start

A pilot program linking the Shanghai and Hong Kong stock markets could be up and running as early as October, China Business News reported Monday.

The China Securities Regulatory Commission has scheduled network tests for the end of August and mid-September, meaning the technical system will be in place by then, the report said.

As of Friday, 90 mainland brokers, or 91 percent of those eligible on the mainland, had applied for the pilot program. And 215, or 43 percent of the total, from Hong Kong have also applied, commission spokesman Zhang Xiaojun was quoted as saying.

“Most brokerages and mainstream technical system developers are on track to get their technical system ready,” Zhang said.

Both exchanges have reached consensus on the overall framework, including trading settlement, cross-border monitoring and coordination, cross-border legal execution and commercial cooperation, according to Zhang.

In addition, two exchanges might unify trading hours for the pilot program, the report said. The morning session ends at 11.30am in Shanghai and noon in Hong Kong, while the afternoon session closes at 3pm in Shanghai but ends at 4pm in Hong Kong.

But the two sides have yet to agree on tax issues, negotiations the commission is leading, Zhang added.

– Contact us at [email protected]

JZ/JP/SK

Freelance journalist

EJI Weekly Newsletter

Please click here to unsubscribe