China has given formal approval to the much anticipated cross-border stock trading between Hong Kong and Shenzhen, complementing a similar scheme with Shanghai.
Beijing made the announcement Tuesday on the government website. It did not give a time frame.
All relevant work for the Shenzhen-Hong Kong Connect has been completed, Premier Li Keqiang told a regular meeting of the State Council, China’s cabinet.
Hong Kong’s Securities and Futures Commission and the China Securities Regulatory Commission launched the Shanghai-Hong Kong Connect in 2014.
The link, hailed as a major step in the mainland’s efforts to open up its capital market, allows foreign investors to place buy or sell orders on Shanghai’s A-share market through brokers in Hong Kong.
The Shenzhen-Hong Kong Connect works the same way, allowing investors to tap into the mainland’s second largest stock exchange.
Hong Kong Exchanges the Clearing Ltd. (00388.HK), operator of the domestic stock market, was expected to announce details of the scheme at a media briefing scheduled for 9 p.m. Tuesday.
Hong Kong stocks have surged in the past two weeks on expectations of the launch of trading link.
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