The Hong Kong and Shanghai inventory exchanges have introduced that they will open up a path for international institutional investors to trade sure shares mentioned on the Chinese mainland’s red-very hot higher-tech board by using a program connecting the two bourses.
The transform comes as China is pressing ahead with steps to open mainland fiscal marketplaces to foreign funds. The go will give traders who trade in Hong Kong, such as international traders, increased access to shares outlined on the STAR Market place, the Shanghai Inventory Exchange (SSE) claimed in a Friday statement (website link in Chinese).
Starting Feb. 1, shares outlined on Shanghai’s STAR Industry that are also aspect of the SSE 180 and SSE 380 indexes, or individuals whose issuers concurrently have shares outlined in Hong Kong, will be qualified to be traded in the Asian economic hub as a result of the Shanghai-Hong Kong Stock Join plan, according to the assertion.
The SSE 180 Index tracks the 180 largest and most liquid A-share shares mentioned in Shanghai. The SSE 380 Index is manufactured up of 380 mid-cap stocks with very good profitability. Only institutional investors will be authorized to trade the STAR Current market shares via the inventory hook up plan, the statement reported.
The STAR Sector is residence to extra than 200 detailed corporations with combined current market benefit of 3.7 trillion yuan ($571 billion). Launched in mid-2019, the board is China’s to start with to adopt a extra clear and sector-oriented IPO method as part of the Chinese government’s efforts to reform the mainland stock current market.
Read more
In Depth: China’s New Tech Board Takes Off for Lengthy-Expression Mission
Caixin Points out: What’s Driving Regulators’ Backpedaling on China’s New IPO Process?
For their part, traders on the Chinese mainland will also be ready to trade corresponding Hong Kong-detailed shares of issuers of the suitable STAR Current market equities as a result of the inventory connect program, according to the statement. That is expected to be a boon for Hong Kong’s stock trade, which sees cashflow from the mainland as a big income driver. The appreciation of the yuan and the decline in geopolitical chance have prompted mainland cash to find financial investment opportunities in Hong Kong, analysts explained.
Make contact with reporter Tang Ziyi ([email protected]) and editor Michael Bellart ([email protected])
Aid excellent journalism in China. Subscribe to Caixin World beginning at $.99.