Joint announcement of the China Securities Regulatory Commission and the Hong Kong Securities and Futures Commission

The Securities and Futures Commission of Hong Kong (SFC) and the China Securities Regulatory Commission (CSRC) have published a joint statement in which both regulators inform that they have come to an agreement regarding the incorporation of block trading (manual trades) within the existing mutual stock market access framework connecting Mainland China and Hong Kong, commonly known as Stock Connect. This initiative aims to enhance the existing Stock Connect framework by introducing additional trading mechanisms, thereby resulting in improved trading efficiency and the advancement of both capital markets.
With these enhancements, offshore investors will be able to conduct block trades via Northbound trading under Stock Connect, on both the Shanghai and Shenzhen stock exchanges. Investors from Mainland China will be able to conduct manual trades via Southbound trading under Stock Connect on Hong Kong’s stock market. It is expected that both trading mechanisms will be introduced at the same time.
Both regulators will closely supervise the efforts of the involved exchanges and clearing houses in developing a corresponding implementation proposal, thereby considering relevant business, technical, and regulatory requirements. The implementation timeline will be announced in due course, following regulatory approval of the implementation proposal.