Shenzhen rejigs trading halt rules for HK stock link

April 23, 2015 11:39
Song Liping says SZSE is adjusting its regime on trading halts to align it with Hong Kong rules and attract more foreign investors. Photo: HKEJ

Shenzhen is making some "technical adjustments" for the upcoming launch of cross-border stock trading with Hong Kong, the Hong Kong Economic Journal reported Thursday.

These include a rule change on trading halts or suspensions to align them with the practice in Hong Kong.

The Hong Kong and Shenzhen stock exchanges are expected to start the scheme later this year, pending final approval.

This follows a similar trading link between Hong Kong and Shanghai launched in November.

Song Liping, general manager of the Shenzhen Stock Exchange (SZSE), told a forum in Taipei that the exchange is adjusting its regime on trading halts to attract more foreign investors.

The initiative is aimed at cutting costs and minimizing interruptions to derivatives trading.

At present, companies under restructuring are subject to suspension of up to two months.

SZSE is also asking listed companies to release notices and other information in the morning.

Meanwhile, a senior official of the China Securities Regulatory Commission said a similar stock trading program is being considered for Shanghai and Taiwan.

However, Taiwan's Financial Supervision Commission said the proposal involves numerous parties and needs consensus from the larger market.

Translation by Vey Wong

[Chinese version中文版]

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