Date
24 November 2017
The Shanghai-Hong Kong Stock Connect scheme is likely to have its scope of permissible investments widened, according to Ceajer Chan. Photo: HKEJ
The Shanghai-Hong Kong Stock Connect scheme is likely to have its scope of permissible investments widened, according to Ceajer Chan. Photo: HKEJ

Stock Connect program seen expanding in scope

The Shanghai-Hong Kong Stock Connect will see the program’s investment scope widened this year, with index futures and exchange-traded funds possibly brought under the ambit, the Hong Kong Economic Journal reported Tuesday.

Some stocks will relatively lower market capitalization will be added to the scheme, the report said, citing Ceajer Chan Ka-keung, Hong Kong’s Secretary for Financial Services and the Treasury.

Authorities, meanwhile, are expected to unveil soon details of the upcoming Shenzhen-Hong Kong Stock Connect, which is likely to be launched in the second half this year.

The investment quota for the Shanghai program, at the same time, is expected to be increased.

The northbound daily quota is currently at 13 billion yuan with a total quota of 300 billion yuan, while the southbound quota is at 10.5 billion yuan per day and 250 billion yuan in total.

A new set of quotas will be set for purchases of Shenzhen stocks, but southbound investments from Shanghai and Shenzhen will share a common quota, according to the report.

The cross-border stock investment program has seen lukewarm response since it was launched last November. Investments in Hong Kong stocks by mainlanders were especially weak as retail players in China preferred to focus on the domestic market.

This article appeared in the Hong Kong Economic Journal on March 17. 

Translation by Vey Wong

[Chinese version 中文版]

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