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(Yicai) Nov. 19 -- Hong Kong’s stock market operator has marked the 10th anniversary of the Stock Connect program that allows investors in the city and the Chinese mainland to trade stocks in each other's markets by unveiling some forthcoming additions to the link.
The enhancements include the introduction of block trading, Real Estate Investment Trusts, and Chinese yuan-denominated stocks in southbound trading, which allows mainland investors to trade Hong Kong-listed shares, according to a press release Hong Kong Exchanges and Clearing posted on its website yesterday.
The company described them as “additions that will give international and mainland investors even more opportunity and choice in allocating their investment portfolios.”
The Stock Connect has already moved beyond equities to include bonds, exchange-traded funds, and interest rate swaps, noted HKEX Chief Executive Bonnie Y Chan. Its “story is much more than just an investment channel. It is a story of continuous breakthroughs, innovations, and enhancements,” she said.
The Shanghai-Hong Kong Stock Connect was launched on Nov. 17, 2014, while the Shenzhen-Hong Kong Stock Connect was introduced about two years later. Each has northbound and southbound trading legs.
These routes reported average daily turnover of CNY136.3 billion (USD18.8 billion) and HKD43.9 billion (USD5.6 billion) in the first 10 months of this year, accounting for 7.3 percent and 17.2 percent of the total turnover of the mainland and Hong Kong stock markets, per HKEX data.
As of Sept. 30, mainland investors held over HKD3.3 trillion (USD424.1 billion) of securities through the Stock Connect, an increase of more than 200 times from the end of 2014.
“The future holds immense potential, and we at HKEX are committed to working alongside our regulators, our partners, and market participants to take the Connect story to even greater heights.” Chan said.
Editor: Futura Costaglione