SSE, SZSE, HKEX and CSDC Agree on Overall Plan for Inclusion of ETFs in Stock Connect

24 Dec 2021

In accordance with the joint announcement by the China Securities Regulatory Commission (CSRC) and the Securities and Futures Commission (SFC), the Shanghai Stock Exchange (SSE), the Shenzhen Stock Exchange (SZSE), Hong Kong Exchanges and Clearing Limited (HKEX) and China Securities Depository and Clearing Co., Ltd. (CSDC) have reached consensus on the overall plan for ETFs to be included in the Stock Connect, aiming to continuously optimize the Stock Connect mechanism between the markets in Chinese Mainland and Hong Kong, and to enrich the products available through the Stock Connect.

As another landmark achievement in the upgrading of the Stock Connect mechanism, the inclusion of ETFs will complement the cash products under the Stock Connect, and further create mutual benefits between the markets in Chinese Mainland and Hong Kong. On one hand, the inclusion of ETFs in the Stock Connect will expand the investment channels and products available to investors at home and abroad, and help investors more conveniently and effectively allocate resources; on the other hand, the inclusion of ETFs in the Stock Connect will further improve the investor structure, and contribute to the healthy development of the ETF market.

Next, the SSE, the SZSE, HKEX and CSDC will step up the business and technical preparations for the inclusion of ETFs in the Stock Connect, including the revision of relevant rules and public consultation. It is estimated that the preparation work will take approximately six months.